Jewellers in India are anticipating a significant boost in gold and silver sales on Dhanteras, with value sales expected to rise by 20-30% compared to last year. Despite a sharp correction in prices from their January 2026 peaks, the festival's timing at the start of the month is seen as favorable, as consumers will have their salaries in hand. However, high inflation and geopolitical tensions may temper overall sentiment.
Gold prices in the national capital have fallen 19% to Rs 1,48,800 per 10 gram from their January high of Rs 1,83,000, though they remain higher than last year's Dhanteras price of Rs 1,32,400. Silver prices have corrected even more sharply, dropping 52% to Rs 1,94,500 per kg from their January peak of Rs 4,04,500, but still above the Rs 1,70,000 seen on Dhanteras 2025.
Industry experts note that younger consumers are increasingly drawn to silver for its affordability and design variety. While gold volume sales are expected to remain flat, silver volumes could see a 10% year-on-year increase following a near-50% price correction. Consumers are buying both metals for weddings and investment, with gold typically used for main ceremonies and silver for other rituals.
Retailers are optimistic but cautious, with some predicting a slight decline in volume sales due to factors like the rupee-dollar exchange rate. Offers and schemes are being rolled out to attract shoppers, and there is a growing trend toward lightweight and 18-karat gold jewellery. Diamonds, both lab-grown and natural, are also seeing increased demand in the Rs 1.5 lakh to Rs 3-lakh price range.