Ahead of the highly anticipated festive season, characterized by auspicious buying moments like Dhanteras and Diwali, the market for precious metals is experiencing notable price volatility.
Gold and silver prices are facing pressure from two contrasting forces: strong domestic demand driven by cultural tradition, and global instability fueled by geopolitical tensions and trade policies. This confluence of factors has left consumers debating whether to buy now despite the soaring prices, or postpone their purchases in anticipation of a dip. The question remains whether the deep-rooted tradition of buying gold will be enough to ensure a happy and prosperous Diwali for buyers.
Global geopolitical instability remains the primary external driver of high prices. The India Bullion & Jewellers Association Ltd (IBJA) attributes the current price surge to multiple international pressures.
Weighing in with his thoughts, Rajesh Rokde, Chairman, GJC says, “Gold and silver have touched unprecedented levels this festive season, driven by global economic uncertainty, geopolitical tensions, and robust domestic demand. While this has led to understandable hesitation among buyers, it’s important to remember that Dhanteras is not just about price—it’s about tradition, trust, and long-term value. We encourage consumers to make informed decisions: buy in smaller quantities, prioritize certified products, and view this as a strategic investment rather than a one-time purchase. Gold continues to be a hedge against inflation and currency volatility, and silver’s industrial demand makes it a smart choice for younger investors.”
Despite this global pressure driving prices to unprecedented levels, the domestic consumer sentiment remains largely undeterred. Saiyam Mehra, CEO of Unique Chains And Jewels Limited, confirms this enduring commitment to tradition. “Despite the ongoing price volatility in gold, consumer sentiment this festive season remains highly positive. Dhanteras and Diwali continue to hold deep emotional and cultural significance for Indian families, where buying gold is viewed not only as an auspicious tradition, but also as a trusted investment.” He anticipates a 5–7% rise in overall gold demand compared to last year, driven by strong retail sentiment.
This balanced guidance emphasizes informed buying and diversification, especially noting a growing shift towards lightweight, contemporary designs and the appeal of silver for younger investors.
