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Informist, Saturday, Oct. 18, 2025

 

By J. Navya Sruthi

 

MUMBAI – Indians are switching to purchases of gold bars and coins from jewellery on the back of a safe-haven appeal, jewellers said Saturday. After a slow start to this year's Dhanteras, sales of gold and silver improved during the day, with bars and coins receiving higher traction, followed by lightweight jewellery, they said.

 

Dhanteras marks the first day of Diwali. It is a tradition for many communities to buy gold and jewellery on the day. Anil R. Jain, a jeweller at Mumbai's Zaveri Bazaar, said demand for bars and coins has risen 35% while demand for jewellery has fallen 25-30% from last year's Dhanteras. Given the global uncertainties and poor return on investment in equities, consumers are finding gold a better choice, Jain said. Other jewellers also said demand for bars and coins rose by 30–35% this year.

 

Overall gold sales during the day are seen at 35–39 tonnes, largely steady from last year, according to India Bullion and Jewellers Association National Secretary Surendra Mehta. But Manoj Jha, chairman and managing director of Kamakhya Jewels Pvt. Ltd., expects gold sales to be lower this year due to the high prices of the yellow metal. He did not, however, give a number for the fall in sales.

 

Domestic spot gold prices have risen nearly 60% since Dhanteras 2024 to INR 127,471 per 10 grams of 24-carat gold. According to data from the Multi Commodity Exchange, silver prices have risen nearly 61% to INR 156,604 per kilogram. The spot price of silver Friday was INR 168,083 per kg.

 

Gold and silver contracts have recorded multiple highs in 2025. The year-to-date return on gold is over 72% and that on silver is 95%. The most-active December gold contract on the MCX rose 72% in 2025 to a record INR 132,294 per 10 grams Friday. The same-month silver contract on the MCX rose 95% to INR 170,415 per kilogram, also a record high, Friday.

 

Domestic gold and silver prices have risen tracking the lifetime highs of the bullion metals on COMEX, which have been driven by firm safe-haven demand amid the continuing trade spat between China and the US, expectations of more rate cuts by the US Federal Reserve this year, and strong inflows into global exchange-traded funds. In the week ending Friday, gold prices rose nearly 7% on COMEX and 5% on MCX.

 

While these record high prices have resulted in higher traction in the bars and coins segment, sales of jewellery have been down around 30% this Dhanteras. Jain said jewellery sales were down 25–30% at least owing to the high prices. Mehta quoted a similar percentage fall in jewellery sales. He said sales in the lightweight jewellery segment were higher than in other categories. Jha of Kamakhya Jewels said sales of studded jewellery were also higher.

 

Jewellers also reported higher sales of silver this Dhanteras. Jain said sales of silver bars and coins rose 60% with consumers bullish that silver prices will rise further by next Dhanteras. Silver prices corrected slightly Friday, which only led to higher sales Saturday. After trading in positive territory for six days, silver prices on the MCX fell Friday as investors took profits. The most-active December silver contract ended at INR 156,604 per kilogram, down nearly 7% from Thursday's close.  End

 

Edited by Rajeev Pai

 

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