When Dhanteras 2025India arrived on Saturday, October 18, shoppers across the sub‑continent saw gold prices tumble after a meteoric run‑up, while silver surged in demand as buyers chased more affordable glint.
In New Delhi, All India Sarafa Association recorded 99.9 % pure gold hitting Rs 1,34,800 per 10 g on Friday, then slipping to Rs 1,32,400 on Dhanteras day – a correction of Rs 2,400 in a single session. Meanwhile, 24‑karat gold hovered around Rs 13,086 per gram, according to The Economic Times. The swift pull‑back left buyers wondering whether the dip was a fleeting flash or the start of a longer‑term easing.
Record‑Breaking Prices and Sudden Corrections
Just 24 hours before the festival, the price of pure gold surged by Rs 3,200, setting an all‑time high not seen since the last major rally in 2022. Internationally, spot gold flirted with $4,300 per ounce before retreating to $4,211 after President Donald Trump hinted at fresh tariffs on China – a move that rattled futures markets but barely dented Indian demand, analysts say.
Silver told a parallel story. India Today reported the metal falling Rs 7,000 to Rs 1,70,000 per kilogram on Dhanteras, while News9Live listed it at Rs 1,57,300 per kg. Video coverage from Jansatta Hindi News even hinted that prices briefly touched the Rs 2 lakh mark.
Market Data Across Major Indian Cities
Price variations were modest but noticeable. Delhi’s 24‑karat rate settled at Rs 13,086 per gram, while Mumbai quoted Rs 13,050, Chennai Rs 13,080, Kolkata Rs 13,100, and Bengaluru Rs 13,070. These figures, collated by The Daily Jagran, illustrate a tightly‑linked market where regional premiums barely exceed Rs 30 per gram.
Silver, however, showed a wider spread. In Mumbai the metal traded at Rs 172 per gram, whereas in Delhi it was Rs 171, and in Hyderabad traders reported Rs 173. The divergence reflects differing inventory levels and local demand spikes for silver coins and bars.
Shift Toward Silver: Consumer Behaviour
Traditionally, Dhanteras is synonymous with buying gold, but this year’s soaring prices nudged many shoppers toward silver. The All India Gem and Jewellery Domestic Council (GJC) noted that silver‑coin sales jumped 35‑40 % year‑on‑year, while overall gold volumes slipped 10‑15 % compared with 2024. Sachin Jain, India chief of World Gold Council observed, “Gold retained its cultural pull, but silver’s growing strength was evident on Dhanteras.”
Retailers responded with ‘free gold’ promotions – essentially small bonus pieces for purchases – to soften the blow of high base prices. Yet many buyers opted for lighter designs, 22‑karat gold, or shifted entirely to silver bars and coins, which offer comparable festive value at a fraction of the cost.
Industry Reactions and Forecasts
The Confederation of All India Traders (CAIT) projected total gold and silver sales of roughly ₹60,000 crore for Dhanteras, a 25 % rise over the previous year. Business Today added that “silver business more than doubled in value” despite price hikes, underscoring the metal’s newfound popularity.
Analysts at The Economic Times flagged a bullish outlook for gold, targeting Rs 1.5 lakh per 10 g in the next 12 months, driven by geopolitical tensions, central‑bank buying, and expectations of U.S. interest‑rate cuts. Silver ETFs have already posted a 72 % gain since Dhanteras 2024, suggesting momentum will carry forward.
What This Means for the Diwali Season
Diwali, which kicks off on Dhanteras, is expected to see festive‑season sales crossing ₹50,000 crore, according to the GJC. The surge in silver purchases could reshape gifting patterns, with families buying silver bangles, coins, and even small jewellery pieces as tokens of prosperity.
While gold remains the status symbol for many, the price correction on Dhanteras may have opened a window for first‑time buyers, especially in tier‑2 and tier‑3 towns where affordability is key. If silver continues its upward trajectory, we might witness a longer‑term shift in the Indian precious‑metals market – a trend that could ripple into next year’s Navaratri and beyond.
Frequently Asked Questions
How are gold prices expected to move after the Dhanteras correction?
Analysts anticipate a gradual climb, with many forecasting gold could breach Rs 1.5 lakh per 10 g within a year, driven by global tensions and potential U.S. rate cuts. The short‑term dip is seen as a healthy reset rather than a bearish signal.
Why did silver sales outpace gold during Dhanteras?
With gold hovering near historic highs, many consumers turned to silver as a more affordable yet culturally acceptable alternative. The metal’s price, though up, remained accessible, prompting a 35‑40 % surge in coin sales.
Which cities saw the biggest price differences on Dhanteras?
Silver showed the widest spread, with Mumbai at Rs 172 per gram versus Delhi’s Rs 171. Gold’s premium varied by only about Rs 30 per gram across Delhi, Mumbai, Chennai, Kolkata, and Bengaluru, indicating a tightly‑linked market.
What impact does the Dhanteras market have on the broader Diwali economy?
The Dhanteras surge sets the tone for the entire festive season. With projected festive sales crossing ₹50,000 crore, strong metal purchases boost retail, logistics, and ancillary services, while also influencing consumer sentiment for the weeks that follow.
Are there any policy changes expected that could affect metal prices?
So far, the Indian government has kept import duties steady, but any future changes to GST on gold or adjustments in customs duties could sway prices. Analysts also watch RBI’s monetary stance closely, as interest‑rate moves can affect investor appetite for gold and silver.
