India’s appetite for gold refused to be dimmed by record prices this festive season. Jewellery sales jumped an estimated 15 to 20 per cent to about Rs 62,000 crore over Dhanteras and Lakshmi Pooja, according to the All-India Gem and Jewellery Domestic Council, in one of the strongest festive performances the trade has seen in years.
The surge came despite gold trading near all-time highs through the festival period. For jewellers, the numbers settled a question that had hung over the season: whether buyers would hold back as prices climbed. The answer, delivered at counters across the country, was that they would not — at least not during Dhanteras, when buying gold is itself a ritual.
Dhanteras has always been the trade’s biggest day, and this year it lived up to the billing. Shops reported heavy footfalls from the morning, with queues forming outside popular showrooms in Mumbai, Delhi, Chennai and Kolkata. Many jewellers extended their hours to clear the rush, and several said they sold more by weight than they had dared to hope for.
What is striking about this year’s rush is that it was driven by value as much as by volume. With prices high, even modest purchases translated into large bills, and the Rs 62,000 crore figure reflects both the number of buyers and the price of the metal they bought. Industry watchers say the growth in value terms was flattered by prices, but the footfall and the breadth of buying point to genuine demand.
The pattern of buying also told a story. Lightweight jewellery and coins moved fastest, as younger buyers and first-time purchasers looked for pieces that fit a budget without breaking the festive mood. Bridal buying, which anchors the trade through the wedding season that follows Diwali, was reported to be strong as well, with families using the auspicious days to lock in purchases.
For the wider economy, the festive gold rush is a useful signal. Gold buying in India is as much a savings decision as a consumption one, and the willingness to commit large sums to the metal suggests households still feel confident enough to spend — even as they hedge against uncertainty by choosing an asset that holds its value.
The trade now turns its attention to the wedding season, which runs through the winter months and is traditionally the second big leg of annual demand. If the festive momentum carries over, jewellers expect another strong quarter, though much will depend on where prices go from here.
For now, though, the festival belongs to the jewellers. A season that began with worry about high prices ended with tills ringing and a sales figure that the industry will quote for years: Rs 62,000 crore in two days of buying, and a 15 to 20 per cent jump that no one in the trade had quite predicted.
