Dhanteras: An Economic Signal Analyzed

Key Points

• Gold purchases on Dhanteras totaled approximately ₹20,000 crore last year.
• Retail turnover reached around ₹60,000 crore, with gold being a significant part.
• Gold volume sales were between 20-35 tonnes during Dhanteras itself.
• Demand shifted towards smaller coins and lightweight jewelry due to high prices.
• Overall gold demand in India rose to 802.8 tonnes in 2024, driven by increased value.
• Cultural tradition and liquid asset value remain crucial drivers of demand.

Dhanteras is a special day in India when many families buy gold and other precious metals. It’s not just a tradition; it also shows how prices, habits, and easily-accessible money (liquidity) are connected.

Trade groups estimated that gold purchases for Dhanteras last year were around ₹20,000 crore. The total spending on everything (including other things) was about ₹60,000 crore, with gold being a big part of that. This shows how important Dhanteras is for businesses that sell gold.

Scientists measured the gold sales at 20-35 tonnes during Dhanteras itself. This is a key number for understanding how much gold was actually bought.

Because gold prices were high, many people started buying smaller gold coins and lighter jewelry instead of big, fancy pieces. Shops offered discounts and payment plans to encourage people to buy.

Looking at the bigger picture, India’s gold jewelry demand for the whole year 2024 was about 563.4 tonnes. Even though the amount of gold bought went down a little, the total money spent on gold went up because gold was more expensive. This is happening in other markets too.

The World Gold Council noticed this trend. In places like Europe, gold sales went down because prices were high. But in countries where gold was more expensive, people still bought it, even if they bought less gold overall.

Many people still buy gold on Dhanteras because it’s a long-held tradition, and it’s considered lucky. Also, gold is an easy thing to sell if you need money quickly, which is helpful when other investments aren’t doing well.

For example, a small gold coin bought on Dhanteras can be easily sold if someone needs extra money, which is especially valuable when the stock market is unstable.

Data shows that families still buy gold for festivals and weddings, but they are buying smaller amounts of gold than before. This affects what shops sell, how gold is imported, and what the government does to manage the supply of gold.

This year, with gold prices very high, people might buy less gold, but they will likely still buy it, because it’s a lucky tradition and a safe place to keep money.

Buying gold on Dhanteras is a reminder that traditions and practical financial choices often go hand in hand.