Gold Price Drop Spurs Strong Dhanteras Sales and Shopper Traffic

Jewellers across India experienced a robust surge in customer visits and sales on Dhanteras, as gold prices retreated from recent peaks. This price adjustment encouraged buyers to make auspicious purchases during the festival, while many also took advantage of offers to exchange their old gold. Additionally, the demand was bolstered by the approaching wedding season, prompting higher footfalls in stores nationwide.

Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, highlighted the positive impact of the price correction on consumer activity. He noted that the 22-carat gold price fell by Rs 235 per gram, dropping from Rs 13,385 to Rs 13,150. "This easing has created a favorable window for buyers to invest in gold and jewellery this festive season," he said. Kalyan Jewellers maintains a consistent gold pricing strategy across all its locations to ensure transparency and fairness for customers, regardless of their region.

The company also observed a shift in consumer preferences toward lighter jewellery pieces such as pendants, bangles, and chains. Smaller denominations of gold and silver coins, along with silver artifacts, have gained popularity. Kalyanaraman pointed out the rising significance of Tier II and Tier III cities in driving demand. Markets like Jaipur, Dehradun, Surat, Belgaum, Ara, and Raipur saw an influx of first-time jewellery buyers, enhancing overall sales. Even in metropolitan areas, certain suburbs like Purushawalkam in Chennai, Chembur in Mumbai, and Karol Bagh in Delhi emerged as active shopping centers during the festival.

Similar enthusiasm was evident in Mumbai’s famous Zaveri Bazaar, where jewellery and bullion demand surged by 40 percent compared to last year’s Dhanteras. Kumar Jain, spokesperson for the India Bullion and Jewellers Association, shared that his store opened early to accommodate the steady stream of customers, starting his day at 9 AM instead of the usual noon opening. He also remarked on the strong appetite for gold driven by the upcoming wedding season, with buyers eager to purchase at lower rates amid expectations of price increases.

In Mumbai, the price of 24-carat gold was set at Rs 1,49,000 per 10 grams, while 22-carat gold stood at Rs 1,37,500. Earlier, the 24-carat variety had touched a peak of Rs 1,80,000 per 10 grams. This significant price correction has made gold more accessible to a broader range of customers during the festive period.

PNG Jewellers reported encouraging early sales figures across its outlets. According to Saurabh Gadgil, Chairman and Managing Director, the festival season is expected to deliver a 25 to 30 percent increase in sales compared to the previous year. This optimism is supported by price corrections, strong booking activity before Dhanteras, and the extended Diwali holiday. Gadgil observed a particular demand for wedding and temple jewellery, along with lightweight everyday gold and diamond pieces, especially 18 and 14 karat designs.

Silver jewellery and articles also attracted considerable consumer interest, with old-gold exchange schemes playing a crucial role in Tier II and III city markets. "Consumer sentiment is strong across the country, and we are fully prepared for a successful festive season," Gadgil added.

At Kama Jewelry, there was a noticeable preference for lightweight studded jewellery, with 18-carat gold making up about half of the sales. The remainder was divided between 14-carat and 9-carat options, catering to different spending capacities. Heavy jewellery saw selective bookings ahead of the wedding season, while small gold coins ranging from 1 to 5 grams attracted steady demand. Colin Shah, Managing Director of Kama Jewelry, stated that jewellery sales experienced a 10 percent increase over last year’s Dhanteras, reflecting renewed buyer confidence.

The gold and jewellery sector’s performance during Dhanteras underscores the importance of price movements and festival timing in shaping consumer behavior. With the wedding season approaching and prices more affordable after recent highs, jewellers are optimistic about sustained growth in the months ahead. The expanding contribution from smaller cities also highlights the evolving retail landscape, where new customer bases are emerging beyond traditional metropolitan hubs.