This season local prices are hovering above ₹1 lakh ($1,128) per 10 grams, discouraging consumers, who generally allocate a fixed budget
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ARUN SHARMA
Gold jewellery sales in India are set to drop during the upcoming festival season, as record bullion prices push buyers toward less costly alternatives in one of the world’s largest markets.
Demand for ornaments is likely to drop by as much as 27 per cent from a year ago in volume terms during the three-week buying period, according to Surendra Mehta, national secretary at the India Bullion and Jewellers Association. Consumers, especially in big cities, are postponing spending due to high costs, he said.
Gold is a traditional gift for weddings and special occasions in India, as well as a favored investment. But at a time of year when demand for jewellery is typically strong — the buying season kicks off with the nine-day Navratri festival in September and goes through to Diwali in October — bullion prices are up almost 50 per cent compared to the same festive period last year.
Gold outlets across the country are typically open until midnight during the festival of Dhanteras, which marks the start of Diwali festivities and is a favored time to purchase gold and silver. Jewellery accounts for about 70 per cent of India’s total bullion consumption and for local sellers, revenue for the entire year depends heavily on these few weeks.
This season local prices are hovering above ₹1 lakh ($1,128) per 10 grams, discouraging consumers, who generally allocate a fixed budget. Many end up buying lighter pieces than what they would have desired.
Global spot prices have more than doubled in the last two years, hitting an all-time high of $3,791.10 per ounce this week.
Demand has been under pressure for much of the year. India bought 17 per cent less jewellery between April and June than a year earlier, with total purchases of the precious metal seen dropping in 2025 to the lowest level in five years, according to a World Gold Council report in July.
“Most of the demand now is for lightweight or more affordable pieces,” said Arham Ahmad, a Delhi-based jeweller. People coming to his shop are buying small ornaments, some weighing as little as two grams, he said.
“Demand for heavier jewellery has been subdued for quite some time.”
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Published on September 26, 2025
