Investment: The trend of buying gold this Diwali has changed! People are now investing in this item instead of jewelry..

It's rare in India for Diwali to be celebrated without gold purchases. But this time, the situation is different. Gold prices have risen so much that it's difficult for the common man to purchase jewelry. While gold shops used to be crowded from Navratri to Diwali every year, this time, shops are sitting empty. According to the India Bullion and Jewelers Association, jewelry purchases could decline by 27% in the first three weeks of Diwali.

People are now buying coins instead of jewelry.
Inflation has adversely affected people's pockets. Those who are buying gold are now preferring small coins or lightweight jewelry over heavy jewelry. Demand for 2 to 5-gram gold coins has increased. Instead of spending on jewelry, people are now buying pure gold coins or bars because these don't incur making charges. Experts say this is a wise move; it's an investment and doesn't weigh too heavily on their wallets.

Expensive gold has reduced sales.
This year, gold prices have reached nearly ₹114,000 per 10 grams. This is nearly 50% more expensive than last year. The impact is clearly visible; demand for gold fell by 28% in the first round of purchases, from Rakshabandhan to Onam. Additionally, customers are now shifting to 18-carat gold, which is cheaper, whereas previously, 22-carat was the most commonly purchased.

The confidence of major brands remains intact even amid falling demand.
However, major jewelers are still not disappointed about this season. According to market experts, there is a major reason behind this confidence of major retailers. Rahul Kalantri, Vice President (Commodities) at Mehta Equities Limited, explains that most major players have old inventory purchased at low costs. The sharp rise in gold prices will lead to inventory gains.

Ramesh Kalyanaraman, Executive Director of Kalyan Jewelers, says the company is excited about this festive season. The company is opening 15 new showrooms before Diwali, and new collections and promotional campaigns are also ready. He explained that gold prices are constantly rising, so customers are not waiting any longer. People believe that prices may rise further, so they are choosing to buy now.

Demand for 18-carat gold has increased.

According to Kalyanaraman, demand for 18-carat gold has increased in the urban and North Indian markets. Previously, it was used only in diamond jewelry, but now it is being adopted in traditional designs as well. Meanwhile, in South India, 22-carat gold remains the preferred choice for jewelry.

Senco Gold MD and CEO Suvankar Sen also expressed similar confidence. He says the company expects strong sales in the second half of fiscal 2026, the festive and wedding season. Although gold prices are high, he is confident of sales growth of 18-20% this year.

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