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Gold Demand Drops Over 25% During Festive Season Amid High Prices

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Gold demand in India declined sharply by 28% during the first phase of the festive season, spanning from Raksha Bandhan to Onam, according to data from the India Bullion & Jewellers Association (IBJA). This marks the steepest drop in three years, attributed mainly to soaring gold prices, which saw a nearly 49% year-on-year increase.

Retail prices reached approximately Rs.10,540 per 10 grams (including GST), up from Rs.74,500 during the same period last year. The significant price surge impacted consumer sentiment, leading many to either postpone purchases or opt for more affordable alternatives like lower-karatage and lightweight jewellery.

While overall sales volume fell, some jewellers reported a rise in sales value—by as much as 25–30%—due to the higher prices. The average weight of lightweight jewellery also declined, shifting from 7–12 grams to around 7–10 grams.

In urban and northern markets, there has been growing demand for 18K jewellery, which offers classic designs at more accessible price points. Southern markets continue to show a preference for traditional 22K jewellery, though typically in lighter weights to accommodate tighter budgets.

Lower-karat options such as 14K and 9K gold have gained significant traction, particularly among cost-conscious consumers. Jewellers noted a notable rise in 9K gold jewellery sales, including from major brands introducing collections in this segment.

Despite the drop in jewellery purchases, investment demand for gold has remained stable, with consistent interest in gold coins and small jewellery pieces, particularly in the 2–10 gram range.

Some retailers reported a modest increase in volume and a strong uptick in sales value in the lead-up to the festive season, and expectations remain optimistic for stronger demand during Navratri and Diwali. Manufacturers are also adjusting production strategies to align with changing consumer preferences, focusing more on lightweight and lower-karatage designs.

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National News

Bhima Gold Unveils Ashtalakshmi Coin Collection for Akshaya Tritiya, Blending Devotion with Exquisite Design

A culturally rooted, insight-led launch that reimagines festive gold buying through storytelling, symbolism, and spiritual relevance.

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In a move that blends cultural storytelling with product innovation, Bhima Gold has unveiled its Ashtalakshmi Coin Collection for Akshaya Tritiya – positioning gold not just as a purchase, but as a deeply symbolic expression of prosperity, faith, and intent.

Timed with one of India’s most significant gold-buying occasions, Akshaya Tritiya, the launch reflects a deeper cultural shift in consumer behaviour. While the festival continues to drive strong purchase intent, there is a growing preference for meaningful, purpose-led buying experiences over purely transactional consumption.

Aligned with this evolving mindset, the Ashtalakshmi coin collection has been thoughtfully conceptualised to blend tradition with deeper symbolism. Inspired by the eight sacred forms of Goddess Lakshmi, each coin represents a distinct dimension of prosperity—from wealth and nourishment to courage, knowledge, and continuity.

By bringing together Adi Lakshmi, Dhana Lakshmi, Dhanya Lakshmi, Gaja Lakshmi, Santana Lakshmi, Veera Lakshmi, Vijaya Lakshmi and Vidya Lakshmi, the collection reframes gold coins from being a generic festive purchase to a story-driven, culturally immersive product experience – one that resonates across generations and belief systems.

This launch also aligns with Bhima Gold’s larger centenary narrative of “Together Purever,” which focuses on legacy, shared traditions, and evolving consumer meaning. The collection becomes an extension of that philosophy – reinforcing how heritage brands are reinterpreting tradition for a more aware and emotionally driven consumer.

Customers can pre-book their favourite jewellery by paying just 10% in advance & get their jewellery on Akshaya Tritiya at the lowest rate, which gives customers more flexibility and helps them plan their purchases with greater confidence, especially at a time when gold prices are high.

Akshaya Tritiya has traditionally been associated with intention, belief, and the aspiration for prosperity, extending beyond a purely transactional act of buying gold. The Ashtalakshmi Coin Collection has been conceptualised to reflect this deeper cultural and spiritual significance, with each coin designed to carry a distinct meaning and sense of purpose. The initiative also aligns with evolving consumer preferences, where there is a noticeable shift towards jewellery that offers emotional, cultural, and spiritual resonance in addition to intrinsic value.

With gold prices near record highs and consumer sentiment becoming more considered, Bhima’s Ashtalakshmi Coin Collection signals a broader shift in the category — from price-led promotions to meaning-led engagement, where design, storytelling, and cultural relevance drive both differentiation and demand.

As legacy brands navigate a new era of conscious consumption, Bhima Gold’s latest offering highlights how tradition can be reimagined as experience, making gold buying not just an act of investment, but an expression of identity and belief.

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