India’s Diwali Gold Rush Continues — Even as Record Prices Push Buyers to Go Light
Delhi’s Lajpat Nagar jewellery market is buzzing ahead of Diwali and Dhanteras. Despite gold prices soaring above $1,440 for 10g, shoppers are still lining up to buy — only in smaller quantities.
In India, gold is more than jewellery — it’s tied to tradition, status and belief in good fortune. So even at record highs, buyers are unwilling to skip the purchase entirely.
Shops Adjust to “Buy Less, Buy Smart” Trend
Jewellers say demand has not collapsed — it has simply shifted.
- People are buying lighter and thinner pieces
- Coins now sold in tiny 25mg–250mg sizes
- Younger buyers prefer light daily-wear over heavy bridal sets
One jeweller said customers fear prices may rise further — a “FOMO” effect is pushing people to still buy something.
Gold Buying Shifts from Fashion to Investment
According to World Gold Council data:
- Jewellery share dropped from 80% to 64% year-on-year
- Investment demand (bars, coins) jumped from 19% to 35%
- ETF-based digital gold saw record inflows in September
Many buyers are choosing gold for financial security, not just festivities.
Central Bank Buying Fuels Prices Further
India’s central bank (RBI) has increased gold’s share in reserves from 9% to 14%, to cut reliance on the U.S. dollar. Analysts say the RBI has been a “major pillar” of global gold demand for three years.
Festive Buying Will Hold — But Volumes Will Fall
Economists say the rich will continue buying, while lower-income families may cut back or delay purchases until prices cool.
Still, India’s deep cultural link with gold means demand is unlikely to fade for long — even if the glitter is slightly dimmed this Diwali.
