Golden Shift: India’s Festive Season Sees Unprecedented Move Towards Investment-Grade Coins

Image Source : BW Businessworld

Soaring gold prices during the 2025 Dhanteras festival have led Indian consumers to favor gold coins and bars over traditional jewelry. Despite a dip in jewelry demand, overall spending rose, with buyers adapting by purchasing smaller, lightweight pieces and investment-grade coins to balance tradition with financial prudence.

India’s 2025 festive season witnessed an unprecedented surge in gold prices, reaching record highs of over ₹1,30,000 per 10 grams during Dhanteras—the most auspicious time for gold purchases. This price rally drastically reshaped consumer behavior, shifting demand away from heavy and costly jewelry towards affordable gold coins and bars.

According to industry experts and traders, the steep rise in prices added significant manufacturing premiums to jewelry, making coins and bars a more attractive investment option during the festival. While gold jewelry demand dropped about 17% year-on-year, overall gold consumption stayed robust as buyers preferred lightweight, design-rich ornaments and smaller gold denominations.

Sales value increased by 12-18% despite lower volumes, indicating a preference for quality and investment-grade products among Indians keen to preserve wealth amid economic uncertainties. Retailers also reported a trend towards diamond-studded, minimal gold jewelry designed for everyday wear and bridal occasions, reflecting evolving consumer preferences.

The dramatic gold price increase has been influenced by geopolitical tensions, a weakening rupee, and strong global investment demand. Despite this, Indian consumers remain committed to purchasing gold given its cultural and financial significance.

Notable Updates:

Gold prices hit record highs above ₹1,30,000 per 10 grams during Dhanteras 2025, 60% higher than last year.
Jewelry demand dropped ~17%, while gold coin and bar purchases surged as cost-conscious alternative investments.
Overall festive gold sales value grew 12-18% despite volume decline.
Demand for lightweight, design-rich, and diamond-accented jewelry increased, shifting bridal trends.
High premiums on gold jewelry (10-20% manufacturing costs) drove consumers toward investment grade products.
Gold continues to be seen as a hedge against inflation and currency risk, preserving household wealth.
Market experts predict sustained demand for investment products and potential new price milestones in 2026.

This shift in the Indian gold market during the festival season reveals a sophisticated, adaptive consumer base balancing tradition with economic realities, likely reshaping future buying patterns.

Sources: Reuters, Times of India, Economic Times, Gold.org, Hindustan Times, Business Standard.

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