Jewellers Anticipate Demand Revival for Dhanteras Following Recent Gold Price Correction

Following a prolonged period of subdued consumer activity due to price volatility, major jewellers and market stakeholders are preparing for heightened sales during the upcoming Diwali and Dhanteras festive season. Industry participants attribute the anticipated revival to a recent correction in gold prices.

Gold prices had previously surged to historic highs in January, reaching between ₹1.75 lakh and ₹1.80 lakh per 10 grams, while touching $5,608 an ounce in dollar terms. Prices subsequently corrected downward by roughly 20 to 25 percent from those peaks following global trends, though they have recently seen a slight increase of ₹6,000 per 10 grams over a couple of days. Last Diwali, 24-carat gold traded at about ₹1.21 lakh per 10 grams, compared to ₹1.44 lakh recently.

Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council, noted that families are already making advance bookings to avoid the rush on Dhanteras. The industry expects sales of about 75 tonnes during Dhanteras this year, compared to 100 tonnes spread over two days of Dhanteras last year. Coins, bars, and lightweight hallmarked jewellery are projected to lead sales due to investment traditions and the overlapping wedding season.

Sachin Jain, CEO for India at the World Gold Council Regional, stated that the price correction has stimulated demand and prompted consumers planning weddings over the next three to six months to advance their purchases. Similarly, Suvankar Sen, MD and CEO of Senco Gold, reported a 40 to 50 percent increase in customer footfall and price inquiries, leading the company to introduce flexi-advance plans allowing buyers to secure current prices.

Consumer preferences are also reflecting broader adjustments in purchasing patterns. Saiyam Mehra, CEO of Unique Chains & Jewells, indicated that 9K and 14K gold jewellery are gaining traction as pocket-friendly alternatives. At the same time, Samit Guha, Managing Director and CEO of MMTC-PAMP, and Supriya Kataria, Founder of Kumari Fine Jewellery, noted a rising preference for smaller-denomination bars, coins, and designs emphasizing long-term wearability.

Alongside physical retail, digital avenues and financial instruments are capturing significant consumer interest. Shruti Jain, Chief Strategy Officer at Arihant Capital Markets, and Ashish Goyal, Director at Blue Aster Capital, highlighted that younger consumers are increasingly turning to online gold purchases and systematic investments starting as low as ₹3.

Market data underscores this shift toward electronic and digital formats. Paresh Bhagat, Chairman of Mangal Keshav Financial Services, noted that gold ETFs recorded net inflows of about ₹4,450 crore in September 2026. Niharika Tripathi, Head of Products and Research at Wealthy.in, added that gold ETFs attracted net inflows of around ₹69,000 crore in FY26, more than double the cumulative inflows of the preceding five years, with folios reaching 1.27 crore at the end of September. Furthermore, Prasenjit Paul, Head of Research at Paul Asset, stated that digital gold purchases in India reached approximately ₹2,590 crore in September 2026, marking an 83 percent increase from the previous year.

Gaurav Arora, Head of Research at Sahi, pointed out that silver ETF inflows also rose to ₹1,974 crore in September, up 55 percent from August, though gold continues to lead in overall value. Rahul Khetawat, Senior Vice-President and Fund Manager at 360 ONE Asset, stated that the medium-term outlook for precious metals remains cautiously positive, supported by ongoing central bank buying and sustained investment demand.

"The recent price correction in gold has provided a much-needed catalyst for retail jewellery demand ahead of the festive season. At the same time, the remarkable growth in digital gold and ETF inflows demonstrates a structural shift in how consumers and younger investors approach precious metals. Businesses operating in this sector must seamlessly blend traditional retail experiences with transparent digital investment options to capture this evolving consumer base." — Dr. Shishir Gupta, Founder & CEO, StartupLanes