Gold Prices Surge 60%, Sending Ganesh Chaturthi Sales into a Tailspin

Gold prices have surged by a staggering 60% over the past year, reaching Rs 1.57 lakh per 10 grams in Mumbai's spot market, including a 3% GST. This sharp increase has led to a significant decline in Ganesh Chaturthi jewellery sales volumes, with buyers opting for lighter jewellery and gold coins instead.

Surendra Mehta, national secretary of the India Bullion and Jewellers Association, noted that more buyers this festival season exchanged old jewellery for new pieces rather than buying fresh gold outright. This shift towards exchange-led buying has allowed households to maintain their tradition of a festive gold purchase without committing to the full cost of buying the same weight in new gold.

The Bureau of Indian Standards raised gold hallmarking fees to Rs 75 per article ahead of this year's festive season, adding to the affordability squeeze faced by jewellery retailers. Despite the slowdown, jewellers remain hopeful that demand will recover as the festive calendar progresses toward Diwali and the wedding season.