Record Gold Prices in India Push Festive Buyers Toward Coins and Bullion Over Jewelry

As India enters the festival of Dhanteras, marking the beginning of Diwali, gold prices have reached an unprecedented level — exceeding ₹132,000 per 10 grams (≈ US $1,585) in certain regional markets.

Driven by currency fluctuations and global safe-haven demand, the surge is reshaping India’s centuries-old relationship with gold. Consumers are now turning away from ornamental jewelry toward investment-grade coins and bars, which are viewed as more rational, durable, and liquid.

Retail jewellers report a 10–15% decline in sales volumes compared with last year’s festive season, though overall transaction value has risen due to record prices. Younger buyers, especially in urban centers, prefer lightweight, minimalist pieces — a reflection of modern aesthetics and tighter household budgets.

According to the World Gold Council, India’s gold imports in September reached US $9.16 billion, up 77% month-on-month, underscoring continued enthusiasm for gold as both a cultural and financial asset.

“Gold remains India’s emotional currency — but today’s buyer is guided by both sentiment and strategy,” observes LUXONOMY.

Industry takeaways:

• Luxury brands face a shift in demand, with lighter jewelry and bullion formats gaining traction.
• Market analysts interpret India’s gold appetite as a leading indicator of global precious metal demand.
• Consumers are redefining what “luxury” means — blending heritage with financial prudence.

Although physical jewelry volumes are down, overall value remains strong. Experts predict that the “less volume, more value” pattern will characterize India’s festive gold season through year-end.