Key Highlights

• Gold sales volume dropped 25%, falling to 18 tonnes compared to 24 tonnes last year.
• Sales value increased by 30–35%, largely driven by price hikes.
• Retail gold prices surged to Rs 1.16 lakh per 10 grams, up 48% from Rs 78,000 a year ago.
• Old gold exchanges grew sharply, accounting for 50–60% of sales at several jewellery stores.

The steep rise in prices has discouraged many fresh purchases, with consumers increasingly relying on old gold exchanges. This trend indicates that high prices are reshaping buying habits, with more customers recycling existing assets instead of purchasing new jewellery outright.

Despite lower jewellery volumes, investment demand remained strong. Sales of 5-gram gold coins and 20-gram silver coins saw healthy growth, underlining the continued preference for precious metals as a safe-haven investment.

Future Outlook:Consumers are placing advance orders for the upcoming Dhanteras and Diwali seasons.Many buyers are opting for gold bars now, with plans to convert them into jewellery later, helping them secure current prices while postponing making charges.

Market Implications
The data reflects a mixed outlook. While sales volumes have fallen, the sharp rise in value highlights gold’s enduring importance in India. The growing reliance on old gold exchanges and strategic pre-bookings suggests that consumers are adapting quickly to elevated prices.

With the festive and wedding season approaching, the market will be closely watched to see if these consumer strategies persist and how they will shape India’s broader precious metals industry