Why Dhanteras remains India's biggest gold-buying day despite record prices

Dhanteras has long been both a ritual and an economic signal for Indian households. Every festive season, as lamps go up and homes are cleaned for the arrival of Goddess Lakshmi, many families make a practical purchase at the same time, a piece of gold or other metal that is meant to bless the household and, often, to act as a liquid store of value as well. That combination of devotion and investment makes Dhanteras the most closely watched day on the calendar for jewellers, bullion traders and economists tracking consumer demand.

How much gold was bought on Dhanteras last year?

Dhanteras is a great pathway to look into the practices of how price, habit and liquidity interact. For example, the trade bodies put the estimates for gold buying for Dhanteras last year to around ₹20,000 crore. Confederation of All India Traders (CAIT) estimated festival retail turnover at around ₹60,000 crore, of which it said roughly ₹20,000 crore related to gold purchases. Other industry trackers and media reports suggested that the gold sale, in terms of volumes, were in the 20-35 tonne band for Dhanteras itself.

Putting the festival spike in a wider frame shows a remarkable shift since 2022. India’s gold jewellery demand for the full year 2024 was reported at about 563.4 tonnes, a small fall in volume but a marked rise in rupee value as high prices pushed the total spend up.

The World Gold Council’s full-year analysis for 2024 underlines this dynamic globally. Jewellery volumes fell sharply in many markets as record prices hit affordability, while the value of jewellery spend rose because each gram cost more.

In India, overall gold demand rose to roughly 802.8 tonnes in 2024 when investment and other forms of demand are included.

Rise of lower-cost gold alternative

Those headline numbers have a clear story behind them. When prices ran up through 2024, many shoppers altered what they bought on Dhanteras.

Retail reports and jewellers’ interviews during the festival noted a 10-20 per cent decline in volumes by weight, while rupee turnover on some days rose because of the price effect. Buyers tended to favour small coins and lightweight designs rather than heavy, elaborate jewellery, while retailers offered discounts on making charges and EMI schemes to keep customers walking in.

Silver, too, enjoyed stronger demand as a lower-cost alternative during the same period.

Why buying gold has become essential on Dhanteras

So why do households persist with the ritual even when prices are high? The answer is partly cultural, partly practical.

Culturally, purchasing precious metal on Dhanteras is a centuries-old custom tied to auspiciousness and to the social rituals around marriage, gifting and family wealth. Practically, gold continues to function as a widely accepted, easily liquidated asset.

For many Indian families, a small gold coin bought at Dhanteras can be sold or pledged in a pinch, a feature that assumes added value when broader financial markets are uncertain. Industry data repeatedly shows weddings and festivals remain the dominant drivers of Indian jewellery demand, even as the form of that demand shifts.

Dhanteras spending trends in recent years

The post-2022 trend is therefore twofold: volume pressure and value resilience. Families are buying fewer grams per transaction but spending more rupees overall when prices are elevated. They are also diversifying the form of purchases towards coins, bars and lightweight jewellery. This behaviour has implications for retailers (who manage inventory, making charges and design mixes), for import and trade policy (which affects supply and premiums), and for policymakers who monitor seasonal demand as a barometer of household sentiment.

This year, with gold prices touching record highs and breaching the ₹1,27,000 mark, Dhanteras is likely to remain buoyant. Yet, as the festival retains its cultural significance, the demand flashpoint may shift towards lower-karat preferences or smaller quantities bought per transaction.