How Did Record Gold Prices Push Buyers Toward Silver This Dhanteras?
According to the Confederation of All India Traders (CAIT), combined gold and silver sales this Dhanteras were estimated at around ₹60,000 crore, contributing to total festive spending of nearly ₹1 lakh crore across various categories. However, the trend revealed a key shift — while overall gold value surged, actual gold volume sales dropped 10–15% due to record-high prices near ₹1.32 lakh per 10 grams. In contrast, silver sales soared by 35–40% in quantity terms, particularly for coins and bars.
This divergence underscores how Indian households are adapting their festive investment choices amid elevated metal prices. As gold becomes increasingly expensive, silver is emerging as the preferred alternative, offering both affordability and cultural symbolism.
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Festive Metal Demand Snapshot
CAIT’s Dhanteras report highlights a strong consumer turnout despite inflationary pressures. The resilience in jewelry demand shows the emotional and traditional pull of gold during auspicious occasions, even as consumers increasingly seek value through smaller denominations or switch to silver purchases.
| Category | Estimated Sales Value | Volume Change |
|---|---|---|
| Gold | ₹48,000–₹50,000 crore | ▼ 10–15% YoY due to record prices (~₹1.32 lakh/10g) |
| Silver | ₹10,000–₹12,000 crore | ▲ 35–40% YoY surge in coin and bar purchases |
| Total Dhanteras Spending | ~₹1 lakh crore | Driven by jewelry, automobiles, electronics, and household goods |
Why Are Consumers Turning to Silver?
With gold crossing the ₹1.3 lakh per 10g mark — its highest ever — many festive buyers looked toward silver for its affordability and growing investment appeal. Silver coins, bars, and idols dominated sales, particularly in tier-2 and tier-3 cities, where silver’s accessibility makes it a practical investment. Moreover, the shift also indicates the widening participation of younger investors seeking tangible assets without heavy outlays.
Retailers across India reported strong silver demand even as gold jewelry purchases became more selective, with many opting for lighter designs or token weights. Traders also note that silver’s dual use in both ornamentation and industry adds to its demand profile in high-price gold cycles.
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Market Insights and Economic Implications
The surge in silver demand during Dhanteras could reflect a broader trend of portfolio diversification among Indian households. With rising inflation, investors are rebalancing between high-value and value-driven commodities. Analysts suggest that if gold prices remain elevated, silver’s investment case may strengthen further, both in retail and institutional demand.
Interestingly, jewelers reported higher digital orders for silverware and coins, signifying a blend of tradition and technology in festive buying patterns. The rise of organized retail and e-commerce has also enabled traders to capture incremental festive demand more efficiently.
While total Dhanteras spending exceeded ₹1 lakh crore, gold’s softer volume trend may temper import growth, helping India’s trade balance in the short term. However, the robust consumer sentiment bodes well for discretionary sectors such as retail, jewelry, and e-commerce heading into the final quarter of FY2026.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that the Dhanteras trend highlights a shift from premium to value metals amid rising inflation. Investors should monitor silver’s growing retail footprint and its impact on precious metals ETFs and related equities. While gold retains cultural dominance, silver’s affordability and expanding industrial relevance may offer more tactical opportunities in the near term.
Discover more festive economy insights and actionable analysis at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Dhanteras Trends
- Why did silver outperform gold in volume terms this Dhanteras?
- How do record-high gold prices affect festive buying patterns?
- Is silver emerging as a long-term investment alternative for households?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
