Gold Demand Declines 15% This Dhanteras as Prices Surge

Gold demand during the Dhanteras festival has experienced a significant decline of approximately 10-15 percent in volume this year, primarily due to soaring prices. Despite this drop, the overall value of gold purchases has surged, with estimates suggesting that festive sales could exceed Rs 50,000 crore.

According to Rajesh Rokde, chairman of the Gold Jewelry Council (GJC), the current marketplace reflects a complex relationship between price and consumer behavior. He noted, “Dhanteras 2025 has seen a 10–15 percent dip in volume compared to last year, but overall value is up sharply.”

The average transaction value has increased by nearly 20-25 percent as buyers navigate high bullion prices. Avinash Gupta, Vice Chairman of GJC, confirmed that while many customers are opting for token purchases, there is still a demand for heavier pieces.

Shifting Preferences Towards Silver

This year, the rising price of silver has influenced purchasing decisions, leading to greater interest in silver coins. Sachin Jain, Managing Director of World Gold Council India, stated that consumer sentiment remains strong despite high prices, fueled by strategic buying and early wedding purchases.

“Gold is traditionally associated with good fortune, wealth, and prosperity, and this year has been no different,” Jain remarked. As a result, gold coins have become the preferred choice, while hallmark-certified lightweight jewelry is also seeing robust sales.

Notably, silver items, particularly coins and ceremonial articles, have witnessed a remarkable increase of nearly 40 percent compared to last year. This shift indicates that silver is increasingly viewed as a viable investment option rather than merely a secondary choice.

Sales of silver coins, ranging from 1 gram to 50 grams, have gained traction, especially in tier 2 and tier 3 cities, where buyers are looking for budget-friendly investments and gifts for ceremonies. The 35-40 percent surge in silver coin sales highlights a clear trend towards value-conscious purchasing behaviors.

As the festival unfolds, it is evident that the dynamics of gold and silver purchasing are evolving, with shifting consumer preferences reflecting broader economic trends and cultural practices.