Dhanteras Sees 15% Drop in Gold Volumes Amid Rising Demand

The Dhanteras festival, celebrated in India as a significant day for purchasing gold, experienced a 10-15% decline in gold volumes this year. This drop is largely attributed to soaring gold prices, with demand in value terms exceeding Rs 50,000 crore. The high market prices have shifted consumer preferences, with many opting for silver coins as an attractive alternative.

According to Rajesh Rokde, chairman of the Gold and Jewellery Council (GJC), while the volume of gold purchases has decreased, the overall value has increased significantly. “Dhanteras 2025 has seen a 10-15% dip in volume compared to last year, but we expect festive sales to surpass Rs 50,000 crore,” he stated. The average transaction value has risen by nearly 20-25%, indicating that consumers are purchasing less gold but are spending more on each transaction.

The rise in gold prices has not dampened consumer sentiment. Avinash Gupta, Vice Chairman of the GJC, noted that customers are primarily making token purchases, while heavier pieces are still being bought. This reflects a continued belief that gold symbolizes good fortune and prosperity, a sentiment echoed by Sachin Jain, Managing Director of the World Gold Council India.

Despite the high prices, strategic buying and early wedding purchases have contributed to the strong demand for gold. Lightweight, hallmark-certified jewellery is particularly popular, along with gold coins. The trend towards silver has also become pronounced. Silver items, especially coins and ceremonial articles, have surged by nearly 40% compared to last year.

The shift in consumer preferences indicates that silver is emerging as a viable investment rather than just a secondary option. Sales of silver coins, particularly in denominations ranging from 1 gram to 50 grams, have become a priority for many buyers. This trend is especially evident in tier 2 and tier 3 cities, where budget-conscious consumers are opting for silver as a smart festive investment and for gifting purposes.

In summary, the Dhanteras festival of 2025 highlights the complex dynamics of consumer behavior in the face of rising prices, showcasing a blend of traditional values and modern purchasing strategies. The shift towards silver and the robust demand for gold, despite high prices, illustrate the enduring significance of these precious metals in Indian culture.