Gold prices surge 60% from Rs 98,000 to Rs 1.57 lakh per 10 grams in a year; Ganesh Chaturthi sales fall 15% as buyers switch to lighter jewellery, also buy coins
A huge rise in gold prices from the same time last year has led to a drop in gold sales this Ganesh Chaturthi. Gold sales have declined by around 15% year-on-year in volume terms, with consumers either reducing the quantity they bought or opting for lighter jewellery as a sharp increase in gold prices made purchases more expensive, industry executives said.In Mumbai’s spot market on Monday, gold was trading at Rs 1.57 lakh per 10 grams, including 3% goods and services tax. This was around 60% higher than the Rs 98,000 per 10 grams recorded on Ganesh Chaturthi last year, which fell on August 28.
Gold prices high
“Domestic gold prices have remained at a historic high, which has impacted volume sales. But overall the mood is optimistic, with many people resorting to old gold jewellery exchanges to buy new jewellery, which is mostly lightweight,” said Surendra Mehta, national secretary, India Bullion & Jewellers Association, according to an ET report.Jewellers remain hopeful that the moderation in demand will prove temporary as the festive calendar progresses towards the peak wedding season. Since weddings are also taking place during the festive period, retailers expect buyers to increasingly seek jewellery that can serve multiple purposes, from celebrations and gifting to regular wear.“We are seeing greater interest in diamonds as buyers seek jewellery that is versatile enough for celebrations, gifting and everyday wear,” said Rohan Hemdev, director, Ananya Jewels.
Growing interest in coins
Kumar Jain, owner of Umedmal Tilokchand Zaveri, a 100-year-old outlet in Mumbai’s Zaveri Bazaar, said demand for bullion in the form of coins and bars had picked up during this year’s Ganesh Chaturthi, although volumes remained below last year’s level.“Bullion sales in the form of coins and bars have shown traction this Ganesh Chaturthi, even though the volume is lesser than last year.”The increased preference for coins and bars suggests that consumers are still setting aside money for gold during auspicious occasions, but the elevated price of jewellery is making them more cautious about their purchases.The trend also reflects the broader conditions in India’s gold market. According to the World Gold Council, the festive season began on a cautious note as the sharp rise in gold prices prompted consumers to adopt a wait-and-watch approach and defer discretionary purchases.Wedding-related demand, however, has remained comparatively resilient, while physical investment demand has stayed steady.There is also growing interest among younger consumers in purchasing jewellery for themselves. Women, in particular, are increasingly buying jewellery to celebrate festivals as well as personal milestones.Hemdev expects festive-season sales to register double-digit growth, helped by wedding demand, rising disposable incomes and evolving consumption habits. He also pointed to the growing role of digital platforms, social media, influencers and celebrity collaborations in making jewellery more aspirational and appealing to younger consumers.“With the ongoing festive season, we expect buying interest to gradually pick up, especially as consumers and jewellery retailers prepare for the period,” said Darshan Desai, CEO, Aspect Bullion & Refinery.
Gold hallmarking charges rise
In the meantime, the Bureau of Indian Standards (BIS) has increased the hallmarking fee for gold articles just before the start of the festive season. The charge, which was earlier Rs 45 per gold article, has now been raised to Rs 75. The fee for silver articles, however, remains unchanged at Rs 35.The change was notified through the BIS (Hallmarking) Amendment Regulations, 2026, dated September 14, 2026.BIS hallmarking is the system used to certify the purity of precious metal articles under the Bureau of Indian Standards framework. A hallmarked article carries three important identifiers: the BIS logo, the karat or millesimal fineness and a six-digit alphanumeric Hallmark Unique Identification (HUID) number.Under the amended Schedule IV, jewellers will now be charged Rs 75 for every gold article sent for hallmarking. A minimum charge of Rs 200 will apply to each consignment.There has been no change in the hallmarking fee for silver. Jewellers will continue to pay Rs 35 per silver article to recognised Assaying and Hallmarking Centres (AHCs), with a minimum consignment charge of Rs 150.
