Indians splurge ₹72,000 crore on their favourite golden obsession to satisfy festive craving

India hardly needs an excuse to buy gold, so a nearly 21% price dip from a peak of around ₹1.8 lakh to ₹1.42 lakh per 10 grams was basically an open invitation. With festive devotion and a timely breather at the bullion counter in their corner, Dhanteras and Diwali shoppers turned a minor market slip into a dazzling ₹72,000 crore splurge.

Gold buying rose 30% by volume, according to the India Bullion and Jewellers Association (IBJA), which said consumers bought 52 tonnes of gold worth ₹72,000 crore during the festive season this year.

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Still, the sting of high prices was hard to ignore. Festive demand was supported by the traditional importance of gold purchases during Dhanteras and Diwali and by wedding-season demand, said Himank Sharma, Director, Crisil Ratings. “However, elevated gold prices, which were about 40-45% higher on-year in the September quarter, continued to weigh on affordability and physical consumption.”

Upbeat season for jewellers

For India’s jewellers, the festive season brought more than just a rush of shoppers. Leading players told ET Online that sales grew by an average by around 25% during the Dhanteras-Diwali period compared with a year earlier, as buyers returned to stores after a correction in gold prices and wedding-related purchases added to demand.

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Joyalukkas reported a 25% increase in overall sales, with demand spanning traditional gold jewellery, lightweight everyday-wear collections and gold coins.

“We witnessed an encouraging 25% growth in overall sales during the Dhanteras-Diwali period compared with the same period last year. The performance reflects healthy consumer demand and positive festive sentiment, with strong interest in traditional gold jewellery, lightweight everyday-wear collections and gold coins,” Dr Joy Alukkas, chairman and managing director of Joyalukkas Group, told ET Online.

Senco Gold also had a strong festive run. Managing director and CEO Suvankar Sen described Dhanteras as “truly special” for the company, which recorded sales value growth of more than 25% from last year.

The gains, however, were not limited to gold. At Angara, founder and CEO Ankur Daga pointed to a shift in what consumers chose to buy, with coloured gemstones gaining traction as shoppers looked beyond the weight of the metal.

“Across the broader Indian jewellery industry, this Diwali saw a clear divergence between volume and value, with overall festive sales growing 35% year-on-year. The strongest momentum came from coloured gemstones, which continue to grow at around 35–40% year-on-year, as shoppers looked for distinctive, design-first pieces rather than buying purely for metal weight,” Daga said.

Gold, meanwhile, retained its place in festive and wedding shopping. Daga said a roughly 20% correction from the January 2026 peaks brought buyers who had been sitting on the sidelines back into the market ahead of Dhanteras.

“With a packed wedding calendar over the next few months, families also used this window to lock in essential purchases rather than risk further volatility,” he said.

More reasons to celebrate

For Delhi-based Swastik Jewels, Diwali 2026 came with a second reason to celebrate: the wedding season was just around the corner. With Dhanteras falling on November 6, barely two weeks before the winter wedding season begins on November 20, the jeweller saw festive shopping and bridal purchases coming together, giving demand an added push.

“With Diwali shifting to November this year, Dhanteras is very close to the winter wedding season starting from Dev Uthani Ekadashi on Nov 20, which gives us a double driver - festive + bridal,” said Nitin Gupta of Swastik Jewels, which has been in business for 15 years.

That timing mattered, particularly after a subdued Dussehra. A correction in gold prices from the January peak brought back buyers who had been waiting on the sidelines. Although gold was still more expensive than last Diwali, shoppers saw the decline from its January high as an opportunity to make their purchases.

At the counter, however, the buying strategy changed more than the buying intent. Customers opted for 12-13 gm necklace sets instead of heavier 30-40 gm designs, while 18-carat bracelets weighing around 3.9-4.1 gm and two-tone jewellery found favour, said Gupta.

Smaller coins and lower-carat options also helped keep purchases within budget. In short, shoppers were not abandoning gold; they were adjusting how much of it they could afford.

The price correction also helped Swastik Jewels secure advance bookings, with customers reserving lightweight pieces and collecting them on Dhanteras. Meanwhile, the start-of-month festival timing meant many households had received their salaries, adding to their purchasing power. Old-gold exchange offers provided another route to upgrade jewellery without making a large cash payment.

Diamonds find their sparkle

Gold may have been the main attraction this festive season, but diamonds had their moment too. Natural diamonds recorded their second-highest sales volume in eight years, suggesting that shoppers were still willing to spend on the category despite competition from lab-grown stones and disruptions to global supplies.

C Krishniah Chetty Jewellers reported a 250% jump in natural diamond sales on Dhanteras, while sales during the Diwali season rose 47%. The performance comes as the natural diamond industry grapples with supply disruptions linked to sanctions affecting Russian diamond shipments and the growing presence of lab-grown alternatives.

The shift was also visible across larger jewellery chains. While gold continued to dominate festive purchases, diamond jewellery found buyers among consumers looking for contemporary designs, said Alukkas.

Senco Gold also reported growth in diamond jewellery sales.