Ahead of the Diwali festival, Lajpat Nagar in Delhi is bustling with shoppers eager to purchase gold. The vibrant market atmosphere includes brightly lit shops adorned with flowers. Even during holidays, jewellers are open for business, drawing in crowds despite the high costs of gold.
India’s Diwali Gold Rush: What’s Different This Dhanteras?
This year, gold prices have exceeded $1,440 per 10 grams. The rise—60% for gold and 70% for silver—has somewhat affected consumer demand. However, many Indians remain committed to buying gold during Diwali and the auspicious festival of Dhanteras, which takes place on Saturday.
The Impact of Gold Prices
Even with elevated prices, buyers are motivated by the belief that gold and silver bring wealth and luck. Retailers have noticed a unique trend among consumers, who are expressing a desire to purchase smaller quantities rather than abstaining entirely.
- Increased customer visits reported by Prakash Pahlajani from Kumar Jewels.
- Shoppers exhibit a “fear of missing out,” worried prices may escalate further.
- Tanishq Gupta highlights a shift toward buying less gold, indicating a willingness to spend creatively.
Innovative Solutions from Jewellers
Jewellers are adapting to changing market conditions. They are designing pieces that maintain an elaborate appearance while using less gold. For example, lighter coins made of 250mg gold are priced lower, starting at $35.
- New offerings include coins as light as 25mg.
- Pushpinder Chauhan notes a preference for lighter jewellery among younger consumers.
This growing trend emphasizes daily wear, moving away from traditional heavy gold pieces reserved for special occasions. As Dhanteras approaches, the gold rush reflects both cultural traditions and economic adaptability in India.
