Gold at record high: With gold prices inching above ₹1.3 lakh for 10 grams for 24K ahead of the auspicious festival of Dhanteras, gold jewellery buyers might not be able to throng jewellery stores like last Dhanteras. Gold prices for the same purity have sharply increased by 65.17 per cent from last Dhanteras, when it traded at ₹78,610 per 10 grams.
A bulk of this rally – 58 per cent – can be attributed to the first 10 months of 2025. The conviction of Indians in gold increases with every significant price rise, thereby pushing the demand for the yellow metal higher.
However, the discretionary income in the hands of Indian households has increased, due to the GST reforms, pay commission hikes and arrears being credited and lower inflation. Liquidity is available, and discretionary spending will increase, note various jewellery associations. With this information backing the sales pitch, jewellers are aiming for a foot in the door inside the mind of a buyer sitting on the fence.
Why is the gold price surging?
“Overall demand is high as everyone is a buyer. There is a shift of money from riskier assets to overall commodities, especially safe-haven assets, which is why we are seeing this surge in prices. Market participants are witnessing a fear of missing out, where the prices are already inching higher,” says Manav Modi, Analyst – Precious Metal -Research, Motilal Oswal Financial Services.
Asked if one should still invest in gold despite high prices, Modi says, “Rally in gold looks very strong and convincing for a bull rally as our overall fundamentals have not flinched, despite the prices rising about 60% during the first 10 months of 2025.”
While the prices are high, there is still steam left in the metal, indicate experts. However, you need not burn a hole in your pocket. There are ways to still get a better sheen for your money when it comes to buying gold for Dhanteras 2025 or wedding adornment.
Tender unused gold
The best way to reduce the overall bill amount is to partially tend old gold jewellery or bars if you are considering adornment for yourself or your family. The math isn’t simple, though.
“Two scenarios are playing out. Those who have old gold keep it with themselves due to the higher rate. Another set is tendering old gold from the dead gold reserves in the house that was not being used,” says Rajesh Rokde, Chairman, All India Gem and Jewellery Domestic Council.
Jewellers say recycling of old gold jewellery has increased to nearly 50–55% this year, as compared with 30-35% in the previous year, among small and medium-income buyers. “New jewellery purchases in this segment have dropped by around 30-40% compared to the previous year,” says Dineshkumar Jain, Managing Director of P M Shah Jewellery.
To ensure buyers turn up, jewellers are offering promotional benefits like free gold coins or a rate guarantee benefit to assist with jewellery purchase conversions.
However, buyers should remain cautious, as some offers involve hidden costs through reduced gold rates when you sell your old gold jewellery or inflated making charges, suggest jewellers.
Buy unpolished coins
While making charges are low when one buys coins and bars instead of jewellery, they still lead to a dent in returns for someone considering gold purchases from an investment lens. Take, for instance, the price of a Lakshmi Goddess embossed 10-gram Gold Coin, which costs ₹1,40,789-1,43,560 as compared to a rough cut lagadi (square piece of 24K gold with uneven edges), which was available at ₹1,28,360 from the National Refinery, stationed in select pockets in major cities. That is a loss of 9.68-11.84 per cent in value for a specific design.
These rough-cut bars are suitable for someone interested in the intrinsic value of the metal and would be anyway converting the gold into another form later.
Lower making charge designs
But if jewellery is what you aim at for adorning during weddings or for personal use, then understand that making charges are applicable on a spectrum. Simple designs are available from 9-10 per cent making charges, while complex and intricate jewellery would come at a steeper making charge of 28-35 per cent. Rose Gold designs, Italian cuts and channel setting jewellery with fine details would be offered at 37 percentage or more of the making charges.
Hence request for pieces with low making charges. “Plain jewellery with around 10% making charges is being considered by buyers, and they look at it from the gold price escalation perspective. This is because the making charges worth of costs are recovered in the higher costs of gold in about three to five months,” says Rokde.
Lower karatage
Auspicious buying is usually never diluted in the form of gold purity. But offerings at a lower Karatage are available in India, and stores are expanding their range in the 14-18Karat range. With the right hallmarking, purity concerns are alleviated. The price for gold jewellery in 22K would be ₹11,866 per 10 grams. But the same 10-gram jewellery in 18K would cost ₹9,709.
“For value-conscious buyers, the industry has introduced 14K and 18K gold jewellery, but the response has been modest so far, except for small-ticket online gifting purchases,” Jain.
Hollow/lightweight pieces
There are jewellery designs, which are designed to look bulkier but use fewer grams of gold. Additionally, bangles have a hollow interior or copper wire inserted to avoid deformation. These are easy on the pocket.
Jain says, “Lightweight jewellery, purely gold jewellery with a ticket size between ₹1 lakh to ₹2.5 lakh, is currently in high demand. These include plain gold designs, as well as newer concepts inspired by Turkish, Bagh( hand-made), Kolkata and lab-grown diamond-studded jewellery.
Use credit card points
With consumption increasing, several buyers have accumulated credit card points, which are being used to fund other purchases. Gold purchases are being added to the list of point redemption by younger buyers. Even gift cards are being purchased virtually or physically to fund jewellery purchases and a bag discount in the form of cashback.
“Card-based transactions have risen by about 5–7%, indicating more buyers are using digital or reward-based payment methods like credit card points or gift vouchers,” says Jain. The conversion ratio of points should be assessed while opting for such options.
Use exchanges
Using future contracts of gold on commodity exchanges through brokers is another strategy being used by financially savvy buyers.
“One can invest in the MCX derivative as those future prices are running at a discount compared to the other platforms, and the exchange-traded funds are trading at a significant premium along with the physical market. But the buy on dips stance can be considered from a medium to long-term perspective. There are various platforms to consider and a strategy could be maintained for gold prices,” says Modi.
However, he warns, “Wait for the premiums to settle before exploring your options and strategy.”
Beware
While these are some among many ways to invest in the yellow precious metal, do not go overboard with gold purchases even for investment reasons, as just in the year 2021, gold delivered -4.3 per cent. Similarly, between 2013 to 2018, the returns from gold were only 1 per cent.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
