**Despite soaring gold prices, a remarkable surge in demand for precious metals, particularly silver and lighter gold pieces, signals a robust festive season for India's jewellery market.** **New Delhi, October 20, 2025** — India's festive season has kicked off with a dazzling display of consumer confidence, as jewellery sales on Dhanteras soared to an estimated ₹85,000 crore over the past two days. This impressive figure, reported by the All India Gem and Jewellery Domestic Council (GJC), sets a gleaming precedent for the Diwali period, with projections indicating total jewellery sales could comfortably cross the ₹1 lakh crore mark by the end of the five-day festivities. It's a cl^[1][2]ear sign that even with gold prices at historic highs, the cultural significance of owning precious metals remains deeply etched in the hearts of Indian consumers. The robust demand has surprised many, showcasing the resilience of the Indian market. While the sheer volume of jewellery sold remained on par with last year, the value of these sales saw a remarkable 35-40 per cent growth. This indi^[1][2]cates a strategic shift in buying patterns, with consumers spending more for their cherished pieces, adapting to the elevated prices. ### The ^[3]Full Story Dhanteras, traditionally considered the most auspicious day to purchase gold and silver, unfolded over an extended two-day period this year, conveniently coinciding with a weekend. This longer window provided a significant boost to footfalls and sales across the nation, further amplified by the upcoming Diwali and Bhai Dooj festivities. Markets f^[1][2]rom the bustling lanes of Kolkata to the vibrant showrooms of Delhi witnessed overwhelming crowds, with shoppers eager to partake in the age-old tradition. GJC Chai^[4]rman Rajesh Rokde expressed immense satisfaction with the response, stating, "Across India, approximately 50 to 60 tonnes of jewellery were sold over the two days of Dhanteras, amounting to nearly ₹85,000 crore. The response has been fantastic, with all categories of jewellery witnessing strong demand." Looking ahe^[1][2]ad, the GJC is highly optimistic, projecting that the total jewellery sales for the entire five-day festive window could reach between 100 to 120 tonnes, translating to a monetary value ranging from ₹1 lakh crore to ₹1.35 lakh crore. But here's the^[1][2][5] thing: this festive sparkle comes against a backdrop of unprecedented gold prices. On Dhanteras, 24-carat gold touched historic highs, reaching approximately ₹1,34,800 per 10 grams in major Indian cities. This represents a^[3][6]n almost 65% surge over the past year. While prices saw ^[3][6]a slight correction to around ₹1,30,860 per 10 grams on Choti Diwali, the upward trajectory is firmly in place, with some analysts even forecasting gold to potentially breach ₹1.5 lakh per 10 grams by 2026. What's driving this ^[3][7]seemingly paradoxical surge in sales despite soaring costs? It’s a mix of deeply ingrained cultural beliefs, strategic buying, and evolving consumer preferences. The enduring appeal of gold as both an auspicious purchase and a crucial investment continues to fuel demand, particularly during festivals like Dhanteras and Diwali. ### What This Means T^[8][4][9]his robust performance has several implications for both consumers and the jewellery industry. For one, it highlights a discerning consumer base that is adapting to market realities. Instead of shying away, buyers are opting for lighter, more design-centric gold ornaments, smaller gold coins, and gold bars to adhere to tradition without overspending. This shift ensures that^[3][9][6] the tradition of buying gold on Dhanteras remains alive and well, even if the quantity purchased per transaction is smaller. What's more, silver has emerged as a shining star this festive season. Amidst the relentless climb in gold prices, consumers have clearly shifted their focus towards more affordable alternatives, causing silver sales to nearly double. In fact, silver sales v^[1][2][3]olume surpassed gold during the 2024 festive season and saw a nearly 40% year-on-year surge for Dhanteras 2025. This trend signifies a ^[3]growing acceptance of silver as a valuable and auspicious metal, both for adornment and investment. The demand for natural diamond-studded jewellery has also seen a significant uptick, especially within the bridal market and among men seeking accessories. This diversification in^[3] preferences ensures that the jewellery market caters to a broader range of tastes and budgets. **Key Points:** * Jewellery sales on Dhanteras hit an estimated ₹85,000 crore over two days in 2025. * Total jewellery sales^[1][2] are projected to cross ₹1 lakh crore, potentially reaching ₹1.35 lakh crore, by Diwali. * Gold prices reached histo^[1][2][5]ric highs of approximately ₹1,34,800 per 10 grams on Dhanteras, a 65% surge year-on-year. * Silver sales nearly doubled^[3][6], with consumers opting for more affordable options. * Buyers are favoring lighter^[1][2][3] gold designs, smaller coins, and diamond-studded jewellery. ### The Bigger Picture This y^[3][9][6]ear's festive sales are not just a flash in the pan; they reflect broader trends in the Indian economy and consumer behaviour. Reduced GST slabs have played a role in boosting consumer confidence, making precious metals more accessible. Furthermore, the government's p^[8][4]ush for "vocal for local" initiatives has also encouraged a preference for Indian-made products, benefiting local traders and artisans. The World Gold Council’s analy^[10]sis for 2024 highlighted a global dynamic where jewellery volumes fell due to record prices, but the value of sales still rose. India is mirroring this, with consumers adapting to higher prices by choosing smaller, lighter pieces or focusing on investment-grade items like gold coins and bars. This strategic shift underscores ^[9][11]gold's dual role as a cultural asset and a safe-haven investment, particularly amidst global economic uncertainties. Interestingly, the men's jewelle^[12][11]ry segment is also on an uptrend, with a noticeable increase in men purchasing chains and bracelets, viewing them not just as adornment but as investments. This expanding demographic furthe^[4][13]r diversifies the market and contributes to the overall growth. Even Gold Exchange-Traded Funds (ETFs) have seen strong inflows, reaching ₹8,363.13 crore in September, almost six times higher than a year ago, reflecting renewed investor confidence. ### What Happens Next? With Diwal^[4][11]i just around the corner, jewellers and industry experts anticipate continued momentum. The five-day festive window, culminating with Bhai Dooj, is expected to maintain the brisk pace set by Dhanteras. Retailers are gearing up for further demand, especially as the wedding season approaches, which traditionally sees significant jewellery purchases. Industry players are adapting by o^[13][14]ffering a diverse range of products, from lightweight and 18K gold options to attractive schemes and flexible payment plans, to cater to budget-conscious shoppers. The focus will likely remain on des^[13][9]ign-led pieces and bullion, as consumers continue to prioritize both aesthetic appeal and investment value. The market is poised for continued growth, albeit with a more diversified product mix that increasingly includes silver and diamonds alongside gold. The current festive season is shap^[3]ing up to be a testament to India's enduring love affair with jewellery. Despite the financial pressures of record prices, the cultural pull and investment appeal of precious metals have ensured a glittering start, with hopes high for a truly sparkling Diwali.