As Diwali 2025 lights up the country, the sparkle of gold and silver has turned brighter — and heavier on wallets. Gold prices in India have climbed to record levels this festive season, leaving buyers both excited and anxious. While tradition keeps the demand alive, the unprecedented hike has forced many families to rethink how much gold they can actually afford this year.
Across major Indian cities, the average price of 24-carat gold has touched nearly ₹1,30,000 per 10 grams, compared to last year’s ₹81,000, marking a staggering jump of almost ₹49,000. Silver too has gained momentum, currently priced around ₹1,70,000 per kilogram, up sharply from last year’s rates. Despite these highs, jewellery stores continue to witness steady footfall as the festival of wealth inspires every household to buy at least a symbolic piece.
Why the Sudden Price Surge
Multiple factors have aligned to push gold and silver prices to these extreme levels. According to bullion experts, global economic uncertainty and expectations of US interest-rate cuts have strengthened the appeal of precious metals as safe-haven assets. When global investors move away from stocks toward gold, international prices rise — and India, being one of the largest importers, feels the immediate impact.
At the same time, a weaker rupee has amplified the domestic cost of imported gold. Traders also point to rising inflation in several economies, which often pushes investors toward gold as a hedge. With the Middle East tensions and shifting central-bank policies, the international market remains volatile, indirectly boosting local rates.
However, festival demand is adding an extra spark. Dhanteras and Diwali traditionally mark the biggest gold-buying period in India. Even if prices are high, cultural faith in gold as a symbol of prosperity drives consistent buying.
Changing Buying Habits This Season
Step into any jewellery showroom this week and you’ll notice a subtle shift. Instead of elaborate necklaces and heavy bangles, buyers are opting for small coins, light chains, and minimal designs. The younger generation prefers to invest in digital gold or certified gold coins instead of large ornaments.
“I didn’t want to skip buying gold on Dhanteras, but the prices are scary,” says Ritika Bansal, a marketing professional from Jaipur. “So I picked a 2-gram coin this time instead of earrings. It still feels lucky and fits my budget.”
Jewellers confirm this pattern. Vikas Jain, owner of a major Delhi showroom, explains, “This year, our total sales value is up, but the quantity sold is much lower. People are buying smaller items. Many are shifting toward 18-carat jewellery or gold coins.”
The demand for silver items has also risen sharply, especially for idols, coins, and home décor gifts. Retailers in Rajasthan and Gujarat report brisk sales in silverware, which continues to be a popular festive gift option.
Market Analysts Weigh In
Analysts believe that while the short-term outlook shows strength, buyers could see a mild correction once the festive rush cools. According to Rajesh Khanna, a commodity market expert, “Gold may consolidate near ₹1,25,000–₹1,30,000 for the rest of 2025. Any major fall will depend on global interest-rate decisions and how the rupee behaves against the US dollar.”
On the other hand, silver might see more volatility because its industrial demand has been rising in sectors like solar panels and electric vehicles. The dual nature of silver — both precious and industrial — makes it more sensitive to global manufacturing trends.
For long-term investors, experts suggest systematic purchases rather than lump-sum buying. Gold exchange-traded funds (ETFs) and sovereign gold bonds remain smart options for those who want exposure without worrying about storage or purity issues.
Tradition vs Affordability
Despite steep prices, the emotional bond Indians share with gold remains unbroken. For many, buying gold on Diwali is not about investment but about faith and fortune. Elderly buyers recall how they never skipped this ritual even in lean years.
“I remember buying just a tiny ring during the 2013 price spike,” says Sanjay Verma, a shopkeeper in Udaipur. “It wasn’t much, but it felt right. Gold brings hope and positivity during Diwali.”
Still, affordability concerns are real. Middle-class families are adjusting their shopping lists, focusing more on small-gram purchases or silver substitutes. Some jewellers are offering buy-back guarantees and zero-making-charge schemes to lure hesitant customers.
What Should Buyers Do Now
If you’re planning to buy gold before Diwali, timing and purpose are key. For ritualistic purchases, experts say it’s fine to buy now since sentiment matters more than short-term price movement. But for investment, patience could help secure slightly better rates after the festive peak.
Those looking to diversify should also keep an eye on silver, which often outperforms gold when industrial demand picks up. Investors can explore silver ETFs or certified bullion products for convenience.
Outlook for 2026
Economists expect precious-metal prices to remain elevated in early 2026 if inflation stays sticky and global growth slows. India’s ongoing wedding season will continue to support domestic demand through the winter. However, if central banks begin lowering interest rates, gold might briefly lose some shine as funds flow back into equities.
Silver’s prospects remain linked to technology and clean-energy sectors. With the expansion of EV production and renewable energy projects, industrial consumption is likely to keep silver prices buoyant.
Bottom Line
This Diwali, gold is not just glittering — it’s glowing brighter than ever in financial charts. Whether you buy a small coin or a simple chain, it’s less about size and more about sentiment. Gold continues to represent stability, and silver adds sparkle to that legacy.
So celebrate responsibly, buy within your means, and remember that prosperity is measured not by the weight of gold but by the warmth of the festival you share with your loved ones.