From The Economic Times · Sutanuka Ghosal · · 1m
Gold sales drop 15% during Ganesh Chaturthi as prices surge
Gold sales fell 15% year-on-year during Ganesh Chaturthi as prices jumped 60% from last year, pushing consumers toward lighter jewellery.
In brief
Gold sales fell 15% year-on-year during Ganesh Chaturthi as prices jumped 60% from last year, pushing consumers toward lighter jewellery. High gold prices have reduced volume sales but consumers are shifting to lighter pieces and coins for festive purchases. Originally reported by The Economic Times.
Price surge hits sales
Gold prices rose 60% year-on-year to Rs 1.57 lakh per 10 grams during Ganesh Chaturthi, causing volume sales to drop 15%.
“Domestic gold prices have remained at a historic high, which has impacted volume sales. But overall the mood is optimistic, with many people resorting to old gold jewellery exchanges to buy new jewellery, which is mostly lightweight.”
Shift to coins and bars
Bullion sales through coins and bars are gaining traction despite lower volume, as consumers prioritize affordability during festive periods.
“Bullion sales in the form of coins and bars have shown traction this Ganesh Chaturthi, even though the volume is lesser than last year.”
Wedding demand holds steady
Wedding-related gold purchases remain strong amid the festive season, offsetting declines in general festive jewellery sales.
“The trend is in line with the broader pattern seen in the Indian gold market. The World Gold Council said the festive season had started cautiously, with the sharp rally in gold prices leaving consumers in a wait-and-watch mode and delaying discretionary purchases.”
Younger buyers seek versatile jewellery
Younger consumers are increasingly purchasing jewellery for festivals and personal milestones, favoring pieces that work for multiple occasions.
“We are seeing greater interest in diamonds as buyers seek jewellery that is versatile enough for celebrations, gifting and everyday wear.”
Digital platforms boost appeal
Social media, influencers, and celebrity collaborations are driving demand for jewellery among younger buyers, making it more aspirational.
“Digital platforms, social media, influencers and celebrity collaborations are also becoming increasingly important in making jewellery more aspirational and relevant to younger buyers.”
The big picture
High gold prices have reduced volume sales but consumers are shifting to lighter pieces and coins for festive purchases.
