**A surprising surge in festive shopping defies soaring gold rates, pointing to a deep-rooted cultural and investment conviction.** **New Delhi, October 19, 2025** — It was a Dhanteras like no other. Despite gold prices hitting eye-watering record highs, Indian consumers opened their wallets wide, driving an astounding ₹1 lakh crore (approximately $12 billion USD) in festive spending. This massive shopping spree, spearheaded by an insatiable demand for gold and silver, defied economic predictions and showcased the unwavering cultural significance of the auspicious day. The ^{[1][2][3][4][5][6]}Confederation of All India Traders (CAIT) reported that gold and silver sales alone contributed a staggering ₹60,000 crore to this total, marking a significant 25% increase from last year. This su^{[1][7][2][3][8][9][4][5][6]}rge comes even as 24-carat gold soared to over ₹1,30,000 per 10 grams in many markets, a jump of roughly 60-65% compared to the previous Dhanteras. ### The ^{[10][11][1][12][7][13][2][3][9][14][5][6]}Full Story Dhanteras, traditionally marking the beginning of the five-day Diwali festival, is considered the most auspicious time to buy precious metals and other new items, believed to bring prosperity and good fortune. This year, the muhurat, or auspicious time for purchases, spanned two days, October 18th and 19th. Jeweller^{[10][11][12][15][16][7][8][17][14][5][6]}y markets across the nation, from the bustling lanes of Delhi to the vibrant bazaars of Mumbai and the gold-loving south, witnessed an "unprecedented rush." In Delhi ^{[1][7][2][9][5][6]}alone, gold and silver sales surpassed ₹10,000 crore. While the s^{[1][7][2][9][5][6]}heer volume of gold sold might have seen a slight dip of 10-15% due to the elevated costs, the total value of sales shot up dramatically—by as much as 25% to 45% in value terms—a clear indication that people were spending more rupees, even if they were buying fewer grams. What's behind ^{[10][11][1][12][15][8][14]}this seemingly counter-intuitive spending spree? Many shoppers, having postponed purchases earlier in the year hoping for a price correction, decided to act now as gold showed no signs of falling. "Now that there^[10] is no sign of a correction in prices and all economic indicators are pointing towards fresh highs, people have come out to purchase gold," explained Colin Shah, Managing Director of Kama Jewelry. This year, the^[10]re was a noticeable shift in consumer behavior. Instead of heavy, intricate jewellery, many buyers opted for gold and silver coins or lightweight jewellery. These items are^{[10][11][1][12][15][7][8][9][14]} often seen as smart investments, offering pure metal exposure without the higher making charges associated with elaborate pieces. Industry execut^[10][12]ives noted that 10-gram, 24-carat gold coins, priced around ₹1.40 lakh each, were particularly popular. Even younger cust^[10]omers leaned towards more affordable 9- and 14-carat options. Beyond gold, sil^[10]ver also experienced a massive boom. Its prices surged by 55-81% year-on-year, reaching up to ₹1,80,000 per kilogram. Despite this, deman^{[10][11][1][7][2][8][9][14][5]}d for silver, especially in the form of coins, was robust, with sales surging by 35-40% compared to last year. This reflects a gro^[1][8]wing trend of consumers viewing silver as a more budget-friendly investment alternative. CAIT Secretary Gen^[12][15][8]eral Praveen Khandelwal highlighted that the overall trade on Dhanteras, including other auspicious items, crossed the ₹1 lakh crore mark. This included strong ^[2][9][4][6]sales in categories like utensils and kitchen appliances (₹15,000 crore), electronic and electrical goods (₹10,000 crore), and decorative items and puja materials (₹3,000 crore). ### What This Means This ^[9][4]Dhanteras spending spree underscores the deep cultural and economic importance of gold in India. For millions, buying gold on Dhanteras is not just a tradition; it's a strategic move to preserve wealth and invest in a tangible asset. The willingness of consumers to spend more, even if buying less in volume, indicates a strong belief in gold's long-term value, especially in times of economic uncertainty. The shift towards coins an^[12][9]d lightweight jewellery suggests that consumers are adapting their purchasing patterns. They are balancing tradition with practical investment sense, prioritizing the metal's inherent value over elaborate designs and associated making charges. This trend also highlights the increasing financial literacy among buyers who are actively seeking ways to maximize their investment within their budget. **Key Points:** * Total Dhanteras spending reached ₹1 lakh crore across India. * Gold and silver sales acc^{[1][2][3][4][5][6]}ounted for ₹60,000 crore, a 25% increase in value from last year. * Gold prices surged 60-65% y^{[1][7][2][3][8][9][4][5][6]}ear-on-year, reaching over ₹1,30,000 per 10 grams. * Silver prices increased by 55^{[10][11][1][12][7][13][2][3][9][14][5][6]}-81% year-on-year, touching up to ₹1,80,000 per kg, with strong demand for silver coins. * Consumers favored gold and silv^{[10][11][1][7][2][8][9][14][5]}er coins and lightweight jewellery for investment. * Despite a potential dip in gold^{[10][11][1][12][15][7][8][9][14]} volume sales, the overall value of sales rose sharply. ### The Bigger Picture This year'^{[10][11][1][12][15][8][14]}s Dhanteras performance paints a vivid picture of India's unique relationship with gold. Unlike many Western markets where gold is primarily a financial asset, in India, it's deeply intertwined with culture, tradition, and personal savings. This dual role makes the Indian gold market resilient, even in the face of global price volatility. Expert analysis suggests that cons^[12]umers view price volatility not as a deterrent, but as a "strategic opportunity to reinvest." This perspective, coupled with the ^[10]ongoing belief that gold acts as a hedge against inflation and economic uncertainty, continues to fuel demand. The strong interest from investors, alongside traditional festive buyers, indicates a sophisticated understanding of the metal's financial characteristics. The "Swadeshi Aapnao" campaign and ^[10][12]GST rate cuts also contributed to boosting domestic trade across various sectors, benefiting small traders and artisans. ### What Happens Next? The robust^[9][4] Dhanteras sales set a positive tone for the remainder of the festive season, including Diwali and upcoming wedding seasons. Jewellers and traders will be watching closely to see if this momentum continues, especially as global economic indicators continue to influence precious metal prices. The shift towards investment-grade products like coins and bars might become a more permanent feature of the Indian gold market if elevated prices persist. Consumers will likely continue to adapt, finding innovative ways to honor traditions while making financially prudent choices. For now, the shine of gold, and the prosperity it symbolizes, remains undimmed in the hearts and homes of Indian consumers.

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