With the ongoing wedding season, which began after Dasara, the demand for gold remains high. Vedic pundits have marked several auspicious wedding dates in October, November, and December. With thousands of weddings planned for these months, families are finding it challenging to manage costs. October 27, along with dates in November and December, is considered auspicious, adding to the intense demand for gold and silver for wedding preparations.

Parents like D. Venkateswara Rao and Rajyalakshmi, who planned their daughter’s November wedding, are deeply affected. They noted that the gold price three months ago was around ₹60,000 per 10 grams, but now they face an additional ₹15,000 per 10 grams. Having already taken loans for the wedding, the escalating prices will further increase their financial burdens. They expressed hope that the government could intervene to stabilize gold prices, which would be a relief for families with upcoming weddings.

Gold merchants, too, acknowledge the impact of these prices. G. Balaji, a local gold merchant, noted that while Dhanteras and Diwali traditionally boost gold sales, the extreme prices could slightly dampen sales. Yet, with the strong cultural significance of gold in marriages, demand will likely persist, adding to the festive wedding season atmosphere but also presenting a financial challenge for many.

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According to market data, on Monday, October 21, the price of gold was Rs. 78,200 per 10 grams, and silver stood at Rs. 97,570 per kg. By Tuesday, the prices had risen to Rs. 79,640 for a Libra of gold and Rs. 1,10,000 for a kilogram of silver, highlighting the rapid surge in a short span of time.

Expert Opinions on Rising Prices

Commenting on the price hikes, Gnanasekhar Thyagarajan, CEO and Co-Founder of ComTrendz Research, told news agency PTI that the uncertainty at the global level, particularly in the Middle East, has pushed gold prices to record levels both domestically and internationally. He pointed out that gold is often seen as a safe-haven investment in times of global turmoil, which has contributed to the sharp rise in prices. Although the recent duty reduction on gold imports provided some relief, it hasn’t been enough to stop prices from climbing further.

Saurabh Gadgil, Managing Director of PN Gadgil, echoed similar sentiments, explaining that the price hike is driven by geopolitical tensions, particularly the ongoing conflict in Israel and the Middle East. He emphasized that gold’s reputation as a secure investment has led to increased demand during this time of uncertainty.

On the other hand, despite the rising prices, Sanyam Mehra, Chairman of the All India Gem and Jewellery Domestic Council (GJC), shared a more optimistic outlook. He expects strong sales during the upcoming festive season, especially with over 40 lakh weddings scheduled post-Dhanteras. Mehra noted that around 20-22 tons of gold sales are expected during Dhanteras, even with the high prices. He believes that while there may be a dip in volume, the overall business is likely to match last year’s numbers due to cultural and celebratory demand.

However, not all experts are optimistic. Suvankar Sen, Managing Director and CEO of Senko Gold and Diamonds, expressed concerns about the impact of rising prices on consumer purchases. He predicted a potential drop in sales volume by about 10-12% compared to last year’s Dhanteras, as higher prices could deter some buyers.

Impact on Festive and Wedding Season Sales

With the festive season in full swing, and the wedding season just days away, the jewelry industry is closely monitoring how these soaring prices will affect consumer behavior. Traditionally, festivals like Dhanteras see a surge in gold purchases, as buying gold is considered auspicious. However, with prices at an all-time high, some consumers may opt for lighter or smaller pieces of jewelry to fit their budgets.

Nevertheless, the demand for gold remains resilient, as it is deeply ingrained in Indian culture, especially during important events such as weddings. As millions of weddings are set to take place in the coming months, experts anticipate that many buyers will still go ahead with their purchases, despite the price hikes, driven by both tradition and the desire to invest in gold as a stable asset.

In conclusion, while the rising prices of gold and silver are creating new records and causing concern among consumers and retailers alike, the jewelry industry remains hopeful that cultural traditions will keep demand strong during this festive and wedding season.

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