Mumbai, India – October 18, 2025 — As gold and silver prices surged to record highs during this year’s Dhanteras festival, Indian consumers shifted their buying patterns — favoring coins and bars (bullion) over traditional jewelry. Jewellers across Mumbai and Delhi report strong demand, but in lighter volumes and focused toward investment-grade metal rather than ornate designs.
Gold and Silver: Market Behavior & Consumer Trends
- In Mumbai’s jewelry hubs and Delhi’s Dariba Kalan market, store footfalls remained high, though customers increasingly asked for gold or silver coins and bars as both auspicious purchases and investment plays.
- Buyers appeared more cautious: instead of heavy jewelry pieces, many limited their purchases to small quantities and lighter items.
- Some customers pre-booked small gold lots (for example, 5 grams) to be collected on Dhanteras rather than buying on the spot, reflecting concern over supply and pricing.
Price & Supply Dynamics in Gold and Silver
- The surge in demand, particularly for bullion, has strained availability. Dealers note that while jewelry demand softened under price pressures, coin and bar inventories are being drawn down.
- Gold’s premium in India, driven by import costs, strong global trends, and festive demand, has encouraged buyers to opt for more liquid forms of precious metals.
Implications & Forward Outlook
- This shift signals a growing investor mindset among traditional buyers: even as cultural and ritual significance drives purchases on Dhanteras, many now view precious metals through the lens of value retention and liquidity.
- For jewelry retailers, the trend demands adjustment: stocking lighter, hallmark-certified jewelry and maintaining bullion inventory will be key for meeting evolving consumer preferences.
- For the broader precious metals market, the strong tilt toward bullion underscores the dual role of gold and silver as both sacred assets and financial hedges in volatile economic conditions.
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