Mumbai/New Delhi

Despite high prices, consumer demand for silver outpaced gold on the auspicious occasion of Dhanteras, with silver coin sales surging 35-40 per cent year-on-year and overall value more than doubling, even as the jewellery body expects a 15 per cent volume drop for gold.

Dhanteras, the most auspicious day in the Hindu calendar for buying precious metals, is being celebrated over two days until 1:45 pm on Sunday. Jewellery stores remain open through midnight and on Sunday.

While gold prices surged 63 per cent to Rs 1,32,000 per 10 grams of 24-carat (inclusive of taxes) in the national capital -- up from Rs 81,400 last Dhanteras on October 29, 2024 -- silver prices gone up by 40 per cent, yet demand held firm.

In major markets, gold and silver prices saw a modest correction on Dhanteras. In Mumbai, 24-carat gold eased to Rs 1,28,000 per 10 grams on Saturday from Rs 1,30,000 on Friday, while silver fell to Rs 1,70,000 per kg from Rs 1,77,000.

In Delhi, gold dropped to Rs 1,32,000 per 10 grams (from Rs 1,34,800) and silver to Rs 1,70,000 per kg (from Rs 1,77,000).

The overnight Rs 2,000 dip in gold further fuelled purchases. Buying momentum picked up post-lunch, with consumers shifting to coins and bullion in 1-50 gram denominations for investment, early weddings, and lightweight jewellery.

According to All India Gem and Jewellery Domestic Council (GJC) Chairman Rajesh Rokde, "Dhanteras 2025 has seen a 10-15 per cent dip in overall volume compared to last year, but value is up sharply... we expect festive sales to cross Rs 50,000 crore.

"Despite high prices, sentiment remains upbeat, driven by strategic purchases. Silver coins and puja items surged 40 per cent year-on-year, marking silver's rise as a smart, value-focused investment," he told PTI.

GJC Vice Chairman Avinash Gupta highlighted consumer maturity: "Average transaction value rose 20-25 per cent despite volume dips from high prices. Most encouraging is the 35-40 per cent surge in silver coin sales, especially in Tier 2 and Tier 3 cities, where buyers opted for budget-friendly investments and ceremonial gifting."

He noted a 15 per cent increase in self-purchase trends, with younger consumers choosing lightweight, responsibly sourced silver jewellery.

"Digital campaigns expanded reach, with jewellers in smaller towns reporting stronger growth than metros. This year isn't just tradition -- it's thoughtful, value-driven celebration."

Senco Gold and Diamonds Managing Director and CEO Suvankar Sen said high prices boosted demand for lightweight gold jewellery, but silver bars and coins shone brightest. Pre-bookings, now 15 per cent of business (up from negligible last year), were led by silver.

"Gold sales volume will decline 12 per cent year-on-year due to 40 per cent higher prices, but value rises 20-25 per cent. In silver, volume is similar to last year, but with prices up over 100 per cent, we expect more than double the business," he noted.

PNG Jewellers Chairman and Managing Director Saurabh Gadgil said robust demand was seen across bullion, gold, diamond, and silver jewellery.

"Bullion -- including gold and silver coins and bars -- is performing exceptionally. We couldn't take silver pre-bookings due to supply shortages. We expect buoyant Dhanteras with 15-20 per cent value growth over last year."

World Gold Council India Regional CEO Sachin Jain noted strong gold sentiment across jewellery, coins, bars, ETFs, and digital gold.

"Customers made token and heavy purchases, reinforcing gold's role in fortune and prosperity. Record business is expected through festive and wedding seasons."

However, he acknowledged silver's parallel strength.

Kama Jewelry Managing Director Colin Shah said the festive season will see a surge in 9-18 carat jewellery, with 18-20 per cent overall sales growth expected.

The Confederation of All India Traders (CAIT) said gold and silver sales alone accounted for Rs 60,000 crore, marking a 25 per cent increase from last year.

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India is the world's second-largest gold consumer and one of the largest importers globally, after China.