Gold price dip gives Dhanteras buying a shine, but consumers are spending lighter

A dip in gold prices is giving India's jewellery market an added push this Dhanteras, but the festive shopping basket is looking different this year. While the appetite for buying gold on auspicious occasions remains intact, consumers are increasingly opting for lighter-weight jewellery, smaller denominations of gold and silver coins, and more affordable diamond pieces, signalling smaller-ticket purchases.

Jewellers are reporting an improvement in showroom footfalls, with the correction in gold prices making purchases more attractive. According to Ramesh Kalyanaraman, executive director of Kalyan Jewellers, 22-carat gold prices fell by ₹235 per gram, from ₹13,385 on the previous day to ₹13,150 on Dhanteras.

“We are witnessing strong consumer enthusiasm across markets this Dhanteras, with showroom footfalls picking up significantly. The correction in gold prices has certainly provided an added impetus to festive purchases,” he said.

However, consumers are also increasingly looking at pendants, bangles and chains, alongside smaller gold and silver coins and silver artefacts. Some wedding shoppers are also making token purchases now, with plans to return for larger purchases closer to the occasion.

Smaller cities, bigger contribution

Another emerging trend is the growing contribution of Tier II and Tier III markets to jewellery demand. Kalyan Jewellers is seeing encouraging traction in cities such as Jaipur, Dehradun, Surat, Belgaum, Ara and Raipur, with a healthy addition of first-time jewellery buyers.

Even within metros, neighbourhoods and suburban markets such as Purushawalkam in Chennai, Chembur in Mumbai and Karol Bagh in Delhi are emerging as consumption centres. This points to a widening footprint for organised jewellery retail, with more consumers gravitating towards branded and trusted retailers.

The festive momentum is also extending to diamond jewellery, with retailers looking to tap demand through discounts, exchange programmes and easier payment options. Zen Diamond India recorded 30% sales growth during Dussehra, according to its managing director Neil Sonawala, and expects consumer interest to remain positive through Dhanteras and Diwali, supported by festive and wedding-related purchases.

The company is offering a 1.5-gram 24-carat gold coin on every ₹1 lakh spent on diamond jewellery under its Dazzling Diwali initiative. Its Magic Pricing offer includes one-carat diamond rings at ₹3,99,999, against an original price of ₹5.8 lakh, and one-carat diamond earrings at ₹7,49,999, against ₹12.7 lakh earlier.

The company is also offering zero-cost, zero-interest and zero-down-payment EMIs. Under its exchange programme, customers trading in old gold, diamond and coloured stone jewellery receive ₹2,400 above the selling price when exchanging for diamond-studded jewellery.

The broader industry outlook for diamonds remains positive. Jignesh Mehta, founder and managing director of Divine Solitaires, expects diamond jewellery sales to grow 15-20% during the festive period. India's natural diamond jewellery market is projected to grow at a compound annual growth rate of 12% to approximately ₹1.52 lakh crore by 2030.

Mehta said consumers are increasingly exploring smaller solitaire diamonds and lightweight designs that can be worn every day rather than being restricted to special occasions. Transparency around quality, authenticity and pricing is also becoming important in purchase decisions.

With the Lakshmi-Kubera puja still to take place on Dhanteras evening, jewellers are looking to carry the momentum into the wedding and festive season. The early signs suggest that while the tradition of buying jewellery remains firmly rooted, consumers are becoming more selective about what they buy and how much they spend.