As India gears up for Dhanteras 2025, one of the most auspicious days in the Hindu calendar to buy gold, silver, and other valuables, this year’s celebrations reflect a fascinating shift in consumer behavior. Despite gold prices reaching record highs, the country’s deep-rooted love for the yellow metal continues to shine through. However, the way Indians are buying gold this year reveals much about changing economic realities and investment priorities.
Dhanteras and the Tradition of Gold Buying
Dhanteras marks the beginning of the Diwali festivities, a time when millions of Indians traditionally purchase gold and silver as symbols of prosperity and good luck. From bustling markets in Delhi’s Lajpat Nagar to Mumbai’s Zaveri Bazaar, jewellers have been witnessing heavy footfall. Yet, the nature of purchases is different this year.
According to the latest market data, gold prices have surpassed $1,440 (₹1,20,000 approximately) for 10 grams, making this one of the most expensive Dhanteras seasons in recent memory. Despite the steep cost, demand hasn’t disappeared—it has simply evolved. Many buyers are opting for lighter, innovative jewellery designs or switching to gold coins, bars, and even digital gold.
Consumers Shift from Heavy Jewellery to Smart Investments
The biggest trend in 2025’s Dhanteras season is the growing shift from ornamental purchases to investment-driven buying. Jewellers across India report that more customers are prioritizing gold as a secure investment amid global economic uncertainty.
The World Gold Council (WGC) notes that jewellery’s share of India’s total gold demand fell to 64% in the second quarter of this year, down from 80% last year. Meanwhile, investment demand for coins, bars, and exchange-traded funds (ETFs) rose from 19% to 35%.
“People are not saying they won’t buy gold. They’re saying they’ll buy less—but smarter,” said Delhi jeweller Tanishq Gupta. Lightweight designs and 250mg gold coins, which appear larger but use less gold, are among the season’s most popular options.
The Role of the RBI and Global Factors
Interestingly, gold prices are also being influenced by institutional demand. The Reserve Bank of India (RBI) has significantly increased its gold reserves, with the metal now accounting for nearly 14% of India’s total foreign exchange holdings—up from 9% a year ago.
Experts believe this move by the central bank is aimed at diversifying assets and reducing dependency on the US dollar. According to commodity analyst Kaynat Chainwala of Kotak Securities, “The RBI has been a major pillar of global gold demand over the past three years.”
This surge in official and retail buying has contributed to keeping gold prices high, despite fluctuations in global markets.
How Soaring Gold Prices Affect Indian Households
While affluent buyers continue their festive purchases, middle-class families are feeling the pinch. With gold prices up nearly 60% this year and silver up 70%, many are adjusting their budgets or postponing purchases.
Some shoppers, like Bhavna from Delhi—who plans to get married in early 2026—say they are waiting for prices to dip before completing their wedding jewellery shopping. However, the cultural significance of gold remains too strong to ignore, especially during Dhanteras.
Experts say that while the volume of gold bought may decline, the total value of purchases will likely remain steady because of high prices. As Madan Sabnavis, Chief Economist at Bank of Baroda, explains, “Demand will hold up in value terms, even though volumes may fall.”
The Enduring Cultural and Economic Significance of Gold
India’s attachment to gold is not just sentimental—it’s deeply financial. A recent Morgan Stanley report estimated that Indian households collectively hold about $3.8 trillion worth of gold, equivalent to nearly 89% of the country’s GDP. These holdings act as a wealth buffer during inflation and market volatility, strengthening household balance sheets.
Even in a year when gold prices have climbed to record highs, the faith in the metal as a long-term store of value remains unwavering. Whether in the form of jewellery or coins, gold continues to symbolize security, luck, and prosperity—especially during the sacred occasion of Dhanteras 2025.
As jewellers innovate and investors diversify, India’s gold rush shows no signs of slowing down—only evolving.
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