When Pankaj Arora, national president of the jewellery chapter of Confederation of All India Traders (CAIT), unveiled the latest numbers on October 19, 2025, India’s festive season hit a historic milestone: consumers poured an estimated Rs 1 lakh crore into Dhanteras purchases, with gold and silver alone accounting for roughly Rs 60 crore. The surge mattered because it came despite gold prices soaring 65 % year‑on‑year to cross Rs 1,30,000 per 10 grams, a level many feared would choke demand.
Record Dhanteras spending and gold sales
CAIT’s data, released in an official statement, showed that the two‑day window of October 18‑19, 2025, saw a 25 % jump in bullion sales compared with the previous year. In the nation’s capital, Delhi, bullion markets alone logged more than Rs 10 crore in sales, according to the association’s figures.
Historically, India moves around 39 tonnes of gold during Dhanteras; this year the weight is expected to be higher, driven mainly by a surge in coin purchases rather than traditional jewellery. Southern India, which usually consumes about 40 % of the country’s 800‑850 tonnes of annual gold, remained the biggest regional driver, but the rush was truly pan‑India.
Prices surge, yet shoppers flock
Gold closed on Friday, October 17, at Rs 1,34,800 per 10 grams, while silver hit Rs 1,74,306 per kilogram, both including a 3 % GST. On Sunday the day after, the market corrected – gold slipped by Rs 2,400 and silver by Rs 7,000 – after global spot gold retreated from a record $4,379.44 per ounce to $4,249.98 as traders booked profits.
"Globally, gold’s rally is being fuelled by a weak dollar, expectations of U.S. rate cuts, and massive central bank buying," explained Inderbir Singh Jolly, CEO of PL Wealth Management. He added that domestic premiums have jumped to decade‑high levels as investors increasingly favor bars and coins over ornate jewellery.
Industry voices on the gold rush
Retail leaders echoed the optimism. "The trend shows that we will surpass last year Dhanteras sales both by volume and value," said Baby George, CEO of Joyalukkas. Meanwhile, Colin Shah, managing director of Kama Jewelry, noted, "Now that there is no sign of a correction in prices and all economic indicators are pointing towards fresh highs, people have come out to purchase gold."
Ajoy Chawla, chief executive of Tanishq, added, "Despite record‑high gold prices, we are witnessing renewed enthusiasm this festive season. Consumers are viewing price volatility as a strategic opportunity to reinvest — whether through gold coins or by upgrading jewellery."
Regional highlights and supply strains
Across metros – Mumbai, Delhi, Bangalore – stores reported stock shortages, especially of gold coins. The shortage was so acute that some retailers ran out of inventory before the weekend was over.
Analysts warned that record‑high prices could trim sales volume by up to 15 % compared with prior years, but most retailers expect the higher value per gram to offset any dip in units sold.
Outlook: prices, demand, and economic implications
Looking ahead, ICICI Bank Global Markets projects domestic gold to trade between Rs 1,20,000 and Rs 1,35,000 per 10 grams for the rest of 2025, with a possible climb to Rs 1,45,000 by early 2026. The bank also expects the Indian rupee to hover in the 87‑89 per USD band, a scenario that could further bolster local gold prices.
Beyond the pure numbers, gold’s cultural heft remains a decisive factor. The festival of Dhanteras, tied to Goddess Lakshmi, is traditionally seen as an auspicious time to acquire gold, believed to invite prosperity and ward off misfortune. That belief, fused with a contemporary view of gold as a hedge against inflation, helped fuel the buying frenzy even as prices hit historic highs.
- Rs 1 lakh crore total Dhanteras spending (Oct 18‑19, 2025)
- Gold and silver contributed ~Rs 60 crore (up 25 % YoY)
- Gold price up 65 % YoY; silver up 81 %
- Key retailers report nationwide stock shortages
- ICICI forecasts gold up to Rs 1,45,000/10 g by early 2026
Frequently Asked Questions
Why did consumers spend so much on gold despite record prices?
Gold is both a cultural symbol of prosperity and a financial hedge. With festival traditions urging purchases and a weak rupee attracting safe‑haven buying, shoppers viewed the high price as a long‑term store of value rather than a short‑term expense.
How did the price correction on October 19 affect sales?
The modest dip – Rs 2,400 for gold and Rs 7,000 for silver – barely dented footfall. Retailers in Mumbai, Delhi and Bangalore reported queues continuing unabated, indicating that price volatility reinforced rather than discouraged buying.
Which regions drove the biggest gold purchases?
Southern states remain the largest gold‑consuming belt, accounting for over 40 % of national demand. However, northern metros such as Delhi and Chandigarh saw a sharp rise in coin purchases, and western hubs like Mumbai experienced record jewellery sales.
What are analysts predicting for gold prices in 2026?
ICICI Bank Global Markets expects domestic gold to stay above Rs 1,20,000 per 10 grams throughout 2025 and may reach Rs 1,45,000 by early 2026, driven by a weak dollar, anticipated U.S. rate cuts, and continued central‑bank buying.
How does this spending compare to previous Dhanteras festivals?
The Rs 1 lakh crore total outstrips the Rs 800 crore recorded in 2024, while gold‑related sales are up 25 % year‑on‑year. Despite higher prices, the volume of transactions rose, reflecting both festive demand and an investment mindset among buyers.
Arundhati Barman Roy
The sheer magnitude of the spend is simply heartbreaking, yet it somehow feels inevitable despite the unforseen market dynamics.
yogesh jassal
It's fascinating how the collective psyche turns gold into a beacon of hope even when the price curve looks like a roller‑coaster. One could argue that this is pure optimism wearing a financial suit. Still, the festive spirit adds a layer of cultural resilience that money can't easily quantify. In the grand scheme, perhaps this gold rush is just humanity's way of hugging its own anxieties.
Raj Chumi
Whoa the streets were buzzing like a live wire it's crazy how people just line up with cash and bags of hope No waiting in the banks they just want that shiny metal in their hands
mohit singhal
Patriots rejoice! Our nation’s heritage shines brighter than any foreign market dip 🇮🇳💥 The gold rush is proof that Indians know the value of home‑grown wealth, even if the numbers look scary. Analysts may whisper about bubbles, but we know the real power lies in tradition and our brave economic spirit! 🚀💰
pradeep sathe
Seeing families gather to purchase gold feels like a warm hug in winter. The emotional pull of Dhanteras never fades, even when prices climb.
ARIJIT MANDAL
Data shows a 25% YoY increase; that's the bottom line.
Aditi Jain
One must acknowledge the aristocratic allure of acquiring gold amidst soaring valuations. It is not merely an investment; it is a proclamation of status that transcends ordinary commerce. Our nation’s elite continue to set the benchmark for opulent consumption.
Ria Dewan
Ah, the eternal dance between scarcity and desire-gold makes philosophers look like toddlers with a new toy. The market's drama never ceases to amuse.
rishabh agarwal
From a quiet corner I watch the frenzy unfold, noting how cultural rituals intertwine with the raw mechanics of supply and demand. It's a reminder that economics is as much about stories as it is about numbers. The balance, however delicate, seems to hold for now.
Apurva Pandya
While some cheer the high prices, it's crucial to remember that reckless buying can lead to personal debt – a moral responsibility we shouldn't ignore. 🙏
Nishtha Sood
Even amidst the numbers, there’s room for hope – the festive joy brings families together, and that unity is priceless. Let’s keep the spirit alive without losing sight of prudence.
Hiren Patel
Wow, the drama in the markets today was a kaleidoscope of emotions-gold glittered like a siren’s call and everyone answered! The crowd’s energy was electric, the streets pulsed with anticipation, and the vaults echoed with the clink of coins. It felt like a living poem where each transaction added a new stanza, vivid with hope, fear, and ambition. The gold isn’t just metal; it’s a narrative of the nation’s heartbeat.
Heena Shaikh
The philosophical underpinnings of this gold frenzy are, frankly, a shallow veneer over a deeper economic compulsion. The market’s appetite for shiny assets reveals a collective anxiety masquerading as tradition.
Chandra Soni
Indeed, the systemic inertia driving this surge can be unpacked via a nuanced, KPI‑driven framework. By aligning stakeholder synergies and leveraging cross‑functional leverage points, we can optimize asset allocation while mitigating volatility exposure. In short, the gold wave is both a challenge and an opportunity for strategic asset managers.
Kanhaiya Singh
It is with a measured tone that I observe the extraordinary financial behavior displayed during Dhanteras; one must consider both macro‑economic indicators and cultural imperatives. 🙂
prabin khadgi
Given the current data, a rigorous analysis is warranted: the price elasticity appears depressed, suggesting that consumer demand is relatively inelastic in this fiscal period. Consequently, the revenue surge is a function of price rather than volume, a phenomenon observed in prior high‑inflation cycles.
Aman Saifi
From a balanced perspective, the surge reflects both genuine cultural devotion and rational hedging against inflation. While some see risk, others see stability, and both viewpoints merit respectful dialogue.
Ashutosh Sharma
Oh, the grand saga of gold buying – where do we even begin? First, the endless queues that stretched longer than the Great Wall of China. Second, the retail workers who turned into CEOs of temporary gold empires, shouting prices like street vendors. Third, the analysts who, with all the gusto of a weather forecaster, predicted a market crash that never arrived. Fourth, the families who, after spending a fortune, proudly displayed their new bling like medieval knights with freshly forged swords. Fifth, the media who wrote headlines louder than a circus trumpet, proclaiming a "record gold rush" while ignoring that the underlying inflation is a silent monster. Sixth, the banks that smugly smiled, collecting fees as if they were handing out candy. Seventh, the government that issued statements louder than a megaphone, applauding the consumer zeal while their own budgets look like Swiss cheese. Eighth, the social media influencers who posted selfies with gold bars, as if that made them sages of prosperity. Ninth, the local jewelers who ran out of stock faster than a pop concert ticket sale, yet somehow managed to keep a smile on their faces. Tenth, the skeptics who called it a bubble, only to be proven wrong when the prices kept climbing. Eleventh, the global investors who watched from afar, sipping their lattes while the Indian market did a backflip. Twelfth, the whispered rumors about counterfeit gold that never turned out to be true, because why ruin a good story? Thirteenth, the historical comparison to ancient empires that hoarded gold, drawing an elegant line across centuries. Fourteenth, the subtle yet powerful feeling that this frenzy is less about investment and more about a collective emotional catharsis. Fifteenth, the lingering question of what happens when the price finally decides to drop – will the glitter fade or will the memories stay? In short, this gold rush is a theatrical masterpiece, a blend of economics, culture, and pure human drama that would make even Shakespeare raise an eyebrow.