National News
Dussehra gold sales volume dip by 25%, sales value increase by 30–35%
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
National News
Gold Industry Proposes New Strategy To Cut Imports and Boost Local Economy
Precious Metals Refineries Forum (PMRF) Has Proposed A Two-Track System To Manage Gold More Efficiently
Following Prime Minister Narendra Modi’s call to reduce gold imports and foreign travel, major Indian bullion and jewellery bodies have submitted a new plan to the government and the Reserve Bank of India (RBI). The strategy aims to lower the nation’s trade deficit by tapping into the estimated 30,000 tonnes of gold sitting in Indian households.
This move comes after India’s gold imports jumped 24% to a record $71.9 billion in the 2025-26 financial year, with over 721 tonnes of gold brought into the country.
The New Strategy: Two Separate Systems
The Precious Metals Refineries Forum (PMRF) has proposed a two-track system to manage gold more efficiently:
- For Exporters: Imported gold should be strictly saved for jewellery exporters using one-year Gold Metal Loans (GML).
- For Local Buyers: Domestic demand should be met entirely by recycling household gold. This gold would be collected from citizens, refined locally, and sold back through jewellers and retailers.
Under this plan, people who deposit their idle gold could earn 2% to 2.5% interest, while businesses taking gold loans would pay an interest rate of 3% to 4%.
Fixing Why Past Schemes Failed
Previous government gold schemes failed to gain traction primarily because they left out local jewellers and lacked a proper banking structure. Without a joined-up system, institutions faced high financial risks from changing gold prices.
To fix this, trade bodies are calling for a complete system that includes:
- Direct involvement of trusted local jewellers. The schemes did not take off in the past because jewellers were not part of them. About 10% to 20% of family gold is held as bars or coins.
- Strong bank backing and secure storage vaults across the country.
- Tax incentives, such as removing the 3% GST loss when physical gold is converted into Electronic Gold Receipts (EGR), and offering income tax relief on the interest earned.
Industry Support
Industry experts say a smooth system is already possible. Collection and purity testing centres have confirmed that collected household gold can be processed within 48 hours and safely moved to secure, bank-approved vaults.
Representatives from the Indian Bullion and Jewellers Association (IBJA) recently held discussions with RBI officials to fast-track these changes.
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