Kolkata: Gold prices hit a new record of ₹1,34,800 (with 3% GST) a day ahead of Dhanteras on Friday amid a rally that has propelled the precious metal about 39% higher over the past year, dampening the prospects for festive sales. While the yellow metal appreciated by ₹3,000 per 10 grams on Friday, silver prices fell about ₹7,000 per kg over two days, after scaling a fresh high of ₹1.76 lakh per kg on Wednesday. Nonetheless, silver prices, at ₹1,69,230 per kg, were up 81% year-on-year, outpacing the gold rally.
Friday’s prices will be applicable to sales on Saturday on the occasion of Dhanteras—when Hindus and Jains consider it auspicious to buy valuables such as gold and silver—since commodity trading does not take place at the weekends.
Investment Demand Strong
Jewellers expect lightweight jewellery and lower caratage to see more traction this Dhanteras, even as investment demand in the form of coins might remain strong.
“High prices of gold will impact volume sales of gold this Dhanteras by 15-20%, but the value sales are expected to go up by 25%,” said Suvankar Sen, managing director of listed jewellery company Senco Gold.
Both gold and silver coins have been in demand as many consumers are buying them for investment purposes, while the rest are purchasing coins to convert them into jewellery as and when required. “We have witnessed significant increase in demand compared to last year for our 24-carat gold and silver minted coins and bars at 999.9 plus purity,” said Samit Guha, managing director and CEO of MMTC-PAMP, which owns the country’s only London Bullion Market Association-accredited refinery.
Explaining the reasons behind the continuing gold price rally, Darshan Desi, CEO of Aspect Bullion & Refinery, said, “Gold prices continue to surge, reaching new record highs as concerns about a potential credit crisis in the US outweigh optimism over a likely improvement in US-Russia relations. A weaker US dollar and expectations of interest rate cuts by the Federal Reserve are also supporting the rally. Looking ahead, geopolitical tensions, particularly US-China trade issues and credit market worries, will remain key factors to watch, especially after the recent sharp rise in gold prices.”
Silver slides
Silver prices, on the other hand, softened a bit in the domestic market owing to an increase in supply of the precious metal, said Surendra Mehta, national secretary of India Bullion & Jewellers Association. The premium on silver—or the amount paid above the spot price to purchase physical silverwhich—has reduced to ₹15,000 per kg from ₹22,000 per kg, he said.
Global silver supply stands at 31,000 tonnes, while demand exceeds 35,700 tonnes, resulting in a deficit of nearly 118 million ounces (about 3,345 tonnes), one of the largest deficits in recent years. The deficit is expected to continue for the fifth consecutive year in 2025. Industrial use of silver reached a record 680.5 million ounces in 2024 and is projected to exceed 700 million ounces this year, led by the solar, electric vehicle and electronics sectors. The solar photovoltaic industry alone consumes more than 200 million ounces annually, and could rise to 450 million ounces by 2030, according to a report released by Motilal Oswal Financial Services.
Platinum, which is much cheaper than gold and is priced at ₹48,600 per 10 gm, is emerging as a favourite among Indian men this Dhanteras, according to industry executives.
“Platinum is seeing a strong rise in men’s jewellery, with demand nearly 20% higher than last year,” said Vikas Kataria, promoter of the Madhya Pradesh-based listed firm DP Abhushan.
Friday’s prices will be applicable to sales on Saturday on the occasion of Dhanteras—when Hindus and Jains consider it auspicious to buy valuables such as gold and silver—since commodity trading does not take place at the weekends.
Investment Demand Strong
Jewellers expect lightweight jewellery and lower caratage to see more traction this Dhanteras, even as investment demand in the form of coins might remain strong.
“High prices of gold will impact volume sales of gold this Dhanteras by 15-20%, but the value sales are expected to go up by 25%,” said Suvankar Sen, managing director of listed jewellery company Senco Gold.
Both gold and silver coins have been in demand as many consumers are buying them for investment purposes, while the rest are purchasing coins to convert them into jewellery as and when required. “We have witnessed significant increase in demand compared to last year for our 24-carat gold and silver minted coins and bars at 999.9 plus purity,” said Samit Guha, managing director and CEO of MMTC-PAMP, which owns the country’s only London Bullion Market Association-accredited refinery.
Explaining the reasons behind the continuing gold price rally, Darshan Desi, CEO of Aspect Bullion & Refinery, said, “Gold prices continue to surge, reaching new record highs as concerns about a potential credit crisis in the US outweigh optimism over a likely improvement in US-Russia relations. A weaker US dollar and expectations of interest rate cuts by the Federal Reserve are also supporting the rally. Looking ahead, geopolitical tensions, particularly US-China trade issues and credit market worries, will remain key factors to watch, especially after the recent sharp rise in gold prices.”
Silver slides
Silver prices, on the other hand, softened a bit in the domestic market owing to an increase in supply of the precious metal, said Surendra Mehta, national secretary of India Bullion & Jewellers Association. The premium on silver—or the amount paid above the spot price to purchase physical silverwhich—has reduced to ₹15,000 per kg from ₹22,000 per kg, he said.
Global silver supply stands at 31,000 tonnes, while demand exceeds 35,700 tonnes, resulting in a deficit of nearly 118 million ounces (about 3,345 tonnes), one of the largest deficits in recent years. The deficit is expected to continue for the fifth consecutive year in 2025. Industrial use of silver reached a record 680.5 million ounces in 2024 and is projected to exceed 700 million ounces this year, led by the solar, electric vehicle and electronics sectors. The solar photovoltaic industry alone consumes more than 200 million ounces annually, and could rise to 450 million ounces by 2030, according to a report released by Motilal Oswal Financial Services.
Platinum, which is much cheaper than gold and is priced at ₹48,600 per 10 gm, is emerging as a favourite among Indian men this Dhanteras, according to industry executives.
“Platinum is seeing a strong rise in men’s jewellery, with demand nearly 20% higher than last year,” said Vikas Kataria, promoter of the Madhya Pradesh-based listed firm DP Abhushan.
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