Gold Sales Slump Amid High Prices, Digital Options Gain Popularity

Gold sales remained sluggish during the recent Ganesh Chaturthi festival in India, with industry experts estimating a nearly 15% year-on-year decline in sales volumes. This downturn is attributed to elevated gold prices, which have made the precious metal less affordable for consumers.

The domestic spot gold price has surged over the last two years, rising from ₹69,000-₹70,000 to over ₹1,57,000 per 10 grams. This significant price jump, coupled with making charges and GST, has pushed heavy physical jewellery beyond reach for many buyers.

As a result, consumers are opting for lighter jewellery, exchanging old pieces, or buying smaller quantities of gold. There is also increased interest in digital gold and ETFs, which offer 100% purity, zero making-charge loss, and quick execution.