Soaring Gold Demand on Dhanteras Despite Record‑High Prices

Soaring Gold Demand on Dhanteras Despite Record‑High Prices

Gold prices in India have broken new ground ahead of this year’s Dhanteras, but that didn’t dampen consumer enthusiasm. Despite 10 g bars of 24‑carat gold crossing the ₹1.30 lakh mark, shoppers went ahead with heavy purchases, resulting in an estimated ₹1 lakh crore in spending across gold, silver and festival‑related items.

Strong Festival Buying Drives Sales

According to the Confederation of All India Traders (CAIT), gold and silver alone amounted to ₹60,000 crore, a growth of about 25% year‑on‑year. Trade sources say gold prices rose by about 60% annually, yet footfall in jewellery and bullion shops remained robust.

Price Surge, Yet Unfazed Demand

With gold touching record highs—reports showing over ₹1,30,000 per 10 g—customers shifted preferences. Many chose lighter jewellery, coins or bars to cope with high making‑charges and fabrication costs. Silver too saw a sharp rise, with per‑kg rates jumping significantly compared to last year.

Festival Shopping Beyond Metals

The festival spending was not restricted to precious metals. Dhanteras also saw heavy buys in homeware and electronics. Retailers estimate that utensils and kitchen‑wares fetched roughly ₹15,000 crore, electronics about ₹10,000 crore, and decorative or religious items added another ₹3,000 crore.

Overview of Figures

Gold & silver sales: ~₹60,000 crore

Total festival retail: ~₹1 lakh crore

Annual increase in gold price: ~60%

Year‑on‑year sales jump: ~25%

Final Thoughts

Even though gold has become significantly costlier, the tradition of purchasing it on Dhanteras remains strong. Consumers adapted by opting for lighter pieces and coins while continuing to treat the metal as both sentiment and investment. This resilience signals that cultural values still drive spending more than price alone.