With centuries of Indian love affair with gold, the centuries-old love affair is shining even more during Diwali 2025 as the country is experiencing record-breaking prices. The Delhi jewellery market of Lajpat Nagar is very busy and choked with people who are keen to purchase the yellow metal before the prices rise again.
Gold in Indian culture has always been the favorite item of Indian culture, a symbol of affluence, purity and prosperity and the festivals such as Dhanteras and Diwali are the most auspicious days to purchase gold. Nevertheless this yearly purchase spurt is one that jewellers never experienced before.
Gold Prices Skyrocket, Yet Still Demand Shines
The gold price has risen sharply to 1,440 (1,20,000) dollars per 10 grams and the price of silver has increased close to 70 percent annually. This notwithstanding, the gold rush in India is not over but rather it has just taken a new form.
Jewellers in the country say that customers are purchasing smarter rather than less. They continue to flock to jewellery shops but they are choosing something lighter, thinner and innovative designs to give the appearance of the expensive without the burden or the price tag.
The people are not saying it, it is not I do not want to buy, says Tanishq Gupta, a jeweller in Delhi.
They are simply telling them, I will purchase a little less.
Light Jewellers are Innovative to overcome the high prices
Retailers are adapting by adopting new crafts to make jewellery look grand consuming less gold.
For example:
- Thinner but designed to appear, big gold coins are now minted in 250mg coins.
- Small coins such as 25mg have become the favorite Diwali presents among low-end shoppers.
Prakash Pahlajani, who owns Kumar Jewels, reports it is the fear of missing out (FOMO) that is pushing sales even further.
He said that people think that the prices will go higher and hence they are buying now instead of waiting to buy them later.
Younger Buyers Reinvent the Gold Trends
Interestingly, the gold prices boom has redefined the consumer behavior particularly among the young consumers.
The retailers are witnessing a shift towards lightweight and minimalist jewellery, elegant jewellery that can be worn on a daily basis and not only at a wedding or a festival.
Pushpinder Chauhan, a local retailer, says that young customers desire wearable objects that are modern.
They want lighter designs that fit their style and lifestyle.
This movement is encouraging the traditional brands such as Tanishq, Kalyan Jewellers and Malabar Gold to increase the collections of smart and lightweight gold and fusion jewellery blending tradition with trend.
Dhanteras and Diwali: Fan The Festive Gold Fever
This Dhanteras (October 18) and Diwali (October 20) are likely to create one of the largest festival buys in the last 10 years with consumers scrambling to stock up on the yellow metal before possible worldwide price increases.
Gold and silver also reflect a surge in the volume of the trading within the Multi Commodity Exchange (MCX) in India as well due to the high level of trust that the investors have placed over the precious metals market.
According to experts, the demand of gold will withstand the high prices as India has a strong cultural and emotional attachment to the product.
Former head of MMTC-PAMP Rajesh Khosla says: Gold is not an investment in India, but emotion, heritage, and security in one.
India’s Gold Market Outlook
- Gold price (October 2025): ~$1,440 (₹1.20 lakh per 10g)
- Silver price: Up 70% YoY
- India position: 2nd major consumer of gold in the world (after China)
- Growth of festive demand: +15% YoY (foreseen)
- Trend on the rise: Light jewellery, gold coins and online gold.
Clincher: A Diwali of Style and Substance
Through the high record prices, India will not drop the gold obsession, it is merely changing. Indians are transforming their affection for gold into new realities, with lightweight jewels or more intelligent investments.
The gold rush at Diwali this year is not a purchase of additional gold, it is a purchase of quality, of tradition, of cheapness and of novelty.
The jewellers in India say it is true that gold is costly, but the beauty is inestimable
