Festivals in India mean not only limited to worship or sweets, but in this time people buy new things, especially gold-silver jewelery. Every time Dussehra, Diwali and weddings season comes in gold shops. But this time the story is slightly different.
Gold prices have reached record high, gold reached Rs 109,840 per 10 grams in the local market last week, which is the highest level ever. In 2024, where prices had risen by 21%, this year it has seen an increase of 42%.
Decrease in demand from 10% to 15%!
This wild increase has made a direct impact on the pocket of the common consumer. Common people, especially the middle class, are now withdrawing from buying gold. Meanwhile, an ET report was quoted by experts as saying that in this festive season, the demand for gold could decline by 10% to 15%.
Why is gold bought on festivals?
Gold is not just one ornament in India, but it is considered a symbol of auspicious, prosperity and investment. Buying gold on festivals like Dussehra, Dhanteras and Diwali is considered auspicious. Apart from this, in the wedding season, marriage is considered incomplete without gold jewelery. But when the price of gold reaches such a height, then people have to think about their needs again. Those who were planning to buy 20 grams of gold earlier, now they will be limited to only 10 grams.
Why are prices rising?
In the international market, gold prices have come due to rise in prices, inflation, global uncertainty and dollar strength. Along with this, the inclination of investors has also increased towards gold as it is considered more secure and profitable than other investment options.
What will people do amid rising prices?
Even though the demand for gold is decreasing during the festive season, people are looking for options. Some people are preferring light weight designs, while some will buy digital gold or small jewelery. However, there are now signs that the glow of gold is going to fade this time. Till the price stability comes, people can avoid their shopping or limit.