Gujarat’s gold imports saw a sharp 62% increase in February compared to January, driven by strong wedding-related demand, even though prices remained high. However, year-on-year gold imports fell by 18%, and silver imports experienced a dramatic 97% drop.

Jigar Soni, President of the Jewellers’ Association of Ahmedabad, stated that retail demand for gold remained robust, bolstered by weddings, despite rising prices forcing buyers to spend more. Additionally, investors looking to safeguard their funds from stock market volatility shifted their assets into gold, which is traditionally seen as a safe-haven investment during times of economic and geopolitical uncertainty. The high gold prices, though, led to a preference for lighter jewelry, including lower purity gold options such as 14, 16, and 18 carat.

In February, Gujarat imported 11.32 metric tonnes of gold, up from 6.98 metric tonnes in January. However, the silver import situation was starkly different. The state imported only 3.49 metric tonnes of silver in February, a significant drop from 135.23 metric tonnes in January and 749.01 metric tonnes in February of the previous year.

Soni pointed out that gold prices in Ahmedabad peaked on February 19, reaching Rs 89,500 per 10 grams, nearly 40% higher than Rs 64,000 on the same day in 2024. This price surge also led to a rise in demand for lower-purity gold. On the other hand, silver imports faced a sharp decline primarily due to reduced industrial consumption in the state and volatility in silver prices, which caused businesses to hold off on bulk purchases.