Gold at Rs 1.57 Lakh: How a 60% Price Surge Pushed Ganesh Chaturthi Buyers Toward Coins and Lighter Jewellery

Gold prices have risen so sharply over the past year that they have visibly changed how Indian households shopped for this year's Ganesh Chaturthi. In Mumbai's spot market, gold was trading at Rs 1.57 lakh per 10 grams, including 3 percent GST, compared with Rs 98,000 per 10 grams on the same festival last year, a jump of roughly 60 percent in just twelve months.

That scale of price increase has had a direct, measurable effect on festive demand: gold jewellery sales volumes fell around 15 percent year-on-year during this year's Ganesh Chaturthi, according to industry executives, as buyers responded to higher prices by changing what and how they bought rather than skipping the festival purchase altogether.

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How Buyers Adapted to a 60% Price Jump

Surendra Mehta, national secretary of the India Bullion and Jewellers Association, said more buyers this festival season exchanged old jewellery for new pieces rather than buying fresh gold outright, with lightweight jewellery capturing most of the demand. This exchange-led buying pattern let households keep up the tradition of a festive gold purchase without committing to the full cost of buying the same weight in new gold.

Kumar Jain, owner of Umedmal Tilokchand Zaveri, a 100-year-old outlet in Mumbai's Zaveri Bazaar, said demand for bullion in the form of coins and bars picked up this Ganesh Chaturthi, even though volumes there too remained below last year's level. The shift toward coins and bars alongside lighter jewellery suggests many consumers are still setting aside money for gold on the auspicious occasion, just in a form that requires a smaller upfront outlay than a full jewellery piece.

An Added Cost Pressure: Higher Hallmarking Fees

Adding to the affordability squeeze, the Bureau of Indian Standards raised gold hallmarking fees to Rs 75 per article ahead of this year's festive season, a cost increase that lands on top of the underlying rise in gold prices itself.

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For jewellery retailers already navigating weaker volumes, an increase in a mandatory compliance cost adds further pressure on margins during what is typically one of the industry's most important selling periods.

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What This Means for Listed Jewellery Retailers

India's listed jewellery retailers, whose businesses are directly exposed to the same volume pressures described by industry executives, will be watching closely to see whether this Ganesh Chaturthi softness in gold jewellery sales extends into the bigger festive events still ahead, including Diwali and the wedding season, or proves to be a temporary reaction that eases as consumers adjust to the new price level.

Retailers with a stronger mix of exchange-led sales, lightweight jewellery collections and bullion coin and bar offerings may be better positioned to sustain footfall through this period of price-driven caution than those more dependent on traditional, heavier jewellery purchases.

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Why Jewellers Remain Hopeful Despite the Slowdown

Despite the double-digit volume decline this Ganesh Chaturthi, jewellers remain hopeful that the moderation in demand will prove temporary as the festive calendar progresses toward Diwali and the wedding season, historically the most significant period for gold and jewellery purchases in India. Some retailers, per industry commentary, are still expecting double-digit growth for the broader festive season overall, suggesting confidence that consumers will continue prioritising gold purchases even at elevated prices, just through the more flexible formats seen this Ganesh Chaturthi.

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Whether that optimism is borne out will depend heavily on where gold prices settle in the coming weeks, since a further sharp rise from current levels could deepen the shift away from traditional jewellery buying, while a period of price stability could allow demand to gradually normalise as buyers adjust their expectations to the new price range.

Conclusion

A roughly 60 percent rise in gold prices over the past year has visibly reshaped festive buying behaviour, pushing Ganesh Chaturthi jewellery sales volumes down around 15 percent even as demand for coins, bars and lighter jewellery held up better. Investors in jewellery retail and gold-linked businesses should watch how this pattern evolves through Diwali and the wedding season, and should consult a SEBI-registered investment adviser before making investment decisions.

FAQs

How much have gold prices risen over the past year?

Ans. Gold prices have risen roughly 60 percent, from Rs 98,000 per 10 grams last Ganesh Chaturthi to Rs 1.57 lakh per 10 grams, including 3 percent GST, in Mumbai's spot market this year.

How much did Ganesh Chaturthi gold jewellery sales fall this year?

Ans. Gold jewellery sales volumes fell around 15 percent year-on-year during this year's Ganesh Chaturthi.

How are buyers responding to higher gold prices?

Ans. Buyers are increasingly exchanging old jewellery for new lightweight pieces and buying gold coins and bars instead of purchasing the same quantity of fresh jewellery as before.

Has demand for gold coins and bars increased this festival season?

Ans. Demand for bullion in the form of coins and bars picked up compared to typical patterns, though volumes still remained below last year's level.

What additional cost pressure are jewellers facing this festive season?

Ans. The Bureau of Indian Standards raised gold hallmarking fees to Rs 75 per article ahead of this year's festive season, adding to cost pressures alongside higher gold prices.

Are jewellers optimistic about the rest of the festive season?

Ans. Yes. Despite the Ganesh Chaturthi slowdown, jewellers remain hopeful that demand will recover as the festive calendar progresses toward Diwali and the wedding season.