Gold sales decline despite festive season in India

Gold sales are expected to be lower during the festive seasons of Gudi Padwa and Akshay Tritiya due to high prices. Currently, gold is priced around Rs 90,000 per 10 grams. Jewellers report that sales have dropped more than 25% in the first quarter of 2025 compared to last year. Many buyers are hesitant to purchase gold. Anil Jain, a jeweller in Mumbai, noted customers are waiting before buying. Dinesh Raja, a local resident, mentioned that he usually buys small amounts for the festivities but is unsure this time. Prithviraj Kothari from RiddiSiddhi Bullions expects slow sales because of rising prices and uncertain market conditions. Consumer buying patterns are changing. Saurabh Gadgil of PNG Jewellers explained that many are now exchanging old gold for new jewellery instead of buying outright. Dr. Renisha Chainani, from Augmont, pointed out that cultural traditions usually support gold purchases during festivals, but high prices are keeping demand low. If prices stabilize, there may be a slight increase in festive buying. In previous years, gold prices ranged from Rs 75,000 to Rs 80,000 per 10 grams. Some individuals who sold their gold to invest in the stock market are regretting their decisions as they faced losses. MP Ahammed from Malabar Group predicts shifts towards smaller jewellery, exchange offers, and flexible purchasing options to stimulate sales. Despite challenges in buying physical gold, digital gold sales are rising. Rhea Chaterji from Safe Gold reported a 20-25% increase in month-on-month purchases. Many consumers are adapting to the market by choosing smaller investments or digital gold, allowing them to continue investing in gold while managing costs effectively.