Business/Alive News: Gold purchases increased by 30% during the Dhanteras and Diwali festive season this year as a sharp fall in prices encouraged customers to return to jewellery markets. Around 52 tonnes of gold worth approximately ₹72,000 crore were sold across the country during the period.
Gold prices declined from a record high of ₹1.80 lakh to around ₹1.42 lakh per 10 grams, a drop of ₹38,000 or nearly 21%. The lower prices attracted buyers who had postponed their purchases in recent months.
Silver demand also remained strong. Its purchases increased by 10% to around 300 tonnes, valued at approximately ₹5,400 crore.
Gold sales had declined by 50% earlier
Gold sales by volume had fallen by nearly 50% up to September in the current financial year compared with the previous year. High prices and an increase in import duty were among the major reasons behind the decline.
According to Surendra Mehta, National Secretary of the India Bullion and Jewellers Association (IBJA), many customers had delayed buying gold due to rising prices. However, the recent decline encouraged them to return to the market. He said buying activity was still continuing.
The beginning of the wedding season also contributed to higher demand, according to the IBJA.
Diamond sales also record strong growth
Natural diamond sales witnessed a sharp rise during the festive season. Bengaluru-based C Krishniah Chetty Jewellers reported a 250% increase in sales during Dhanteras compared with last year. Sales during Diwali also grew by 47%.
The company said natural diamond sales reached their second-highest level in the past eight years.
Meanwhile, the market for lab-grown diamonds is also expanding. According to NITI Aayog estimates, India’s lab-grown diamond jewellery market was valued at ₹3,452 crore in 2025 and is expected to reach ₹5,179 crore by 2028.
India exported 1.88 crore carats of lab-grown diamonds in 2025-26, compared with 1.60 crore carats of natural diamonds. Jewellers increasingly view lab-grown diamonds as a separate jewellery category rather than a replacement for natural diamonds.
