NEW DELHI: Gold demand this Dussehra witnessed a significant decline, with sales falling 25% to 18 tonnes compared to 24 tonnes during the same festival last year, according to the India Bullion & Jewellers Association (IBJA).“Last year Dussehra was a better one as the volume of gold sold was 24 tonnes. This year, the prices have remained at Rs 1.16 lakh per 10 gm on Dussehra, which has dented the demand,” said Surendra Mehta, national secretary of IBJA, as quoted by ET.In terms of value, however, sales rose by around 30-35%, reflecting the higher bullion prices. On Dussehra, celebrated Thursday, gold was priced at Rs 1.16 lakh per 10 gm—a sharp increase from Rs 78,000 per 10 gm the previous year. Buyers also pay 3% GST on gold, along with making charges ranging between 15-30%, depending on design intricacy.Despite reduced sales, many customers are already placing orders for Dhanteras, Diwali, and the upcoming wedding season, expecting that prices are unlikely to drop anytime soon.Gold continues to hold cultural significance, as it is traditionally bought on Dussehra to bring good luck, prosperity, and success. Retail rates on Friday were recorded at Rs 1,16,883 per 10 gm, excluding GST.

Coins and lightweight jewellery gain popularity

Jewellers reported that demand for gold and silver coins remained strong this Dussehra. Coins of 5 gm gold and 20 gm silver were particularly popular among investors.“Investment demand for gold and silver bars remains robust, and customers are making purchases despite price movements. Bullion continues to do well, while bangles, necklaces, and diamond jewellery are showing encouraging momentum,” said Saurabh Gadgil, MD of PNG Jewellers, Pune, as quoted by ET.Lightweight jewellery also saw strong bookings, while old gold exchanges continued to sustain sales, contributing approximately 50-55% of total purchases.In central India, wedding jewellery including diamonds, lightweight, and polki designs performed well.“Wedding jewellery from diamonds to lightweight and polki designs is also performing well, setting a very positive tone for the festive season. Despite higher gold prices, sentiment remains strong,” said Vikas Kataria, promoter of D.P. Abhushan, Madhya Pradesh.In contrast, South India recorded comparatively slower gold sales, with many opting for gold bars to be converted into jewellery later.“Gold bars of 10 gm to 20 gm are selling more. We are also trying to push diamond jewellery in 18 karat, 14 karat and 9 karat, but customers are leaning more towards gold jewellery. Old gold exchange has gone up to 55-60% this Dussehra,” said Varghese Alukkas, MD of Jos Alukkas, which operates 63 stores across five South Indian states, reported ET.