Why gold and silver buyers could face higher prices this festive season

If you have been planning to buy gold or silver this Dhanteras or Diwali, you might want to act soon, prices are already high and could climb further as festive demand picks up.

Gold traditionally sees strong demand during the festive season, and this year is no exception. As of October 14, 2025, the price of 24-carat gold in India stands at ₹1,21,525 per 10 grams, while silver is priced at ₹1,64,500 per kilogram, according to the India Bullion and Jewellers Association (IBJA). These are base rates and do not include GST or making charges, which can significantly increase the final price you pay at retail stores.

"This festive season, gold continues to hold its timeless charm. Dhanteras has always been an auspicious time to buy gold, and this year is no exception. Even with prices at record highs, we are seeing strong demand as families continue to invest for weddings and long-term security," said Piyush Gupta, Director, PP Jewellers.

Gold remains a trusted asset in Indian households, both for its cultural significance and as a safe store of value. While buyers may be paying more this festive season, they also believe prices will rise further, making this a timely purchase, added Gupta.

With the festive season underway, gold and silver prices are trending higher, and buyers may end up paying more than expected. Here’s why:

There have been reports of physical silver shortages. Limited supply and strong demand typically push prices up.

Amid reports of a physical silver shortage in the domestic market, at least four mutual fund houses have temporarily suspended fresh investments in their Silver ETF Fund of Fund (FoF) schemes.

Due to the supply squeeze, silver is currently trading at a premium in India compared to international prices. The limited availability and strong festive demand have further driven prices up.

Tata Mutual Fund, one of the AMCs that paused fresh inflows, cited prevailing market conditions and the shortage of physical silver as key reasons behind the move.

Jewellers may charge higher making charges during peak buying periods. This adds to the final price paid by consumers, especially for coins and jewellery.

Gold rate on Dhanteras 2024 ( October 29) was ₹78,804 per 10g of 24k gold futures dated December 5, according to data from the Multi Commodity Exchange of India (MCX). In general, gold in India has outperformed domestic equities

• 24-Carat Gold (10 grams): ₹1,25,583

• 22-Carat Gold (10 grams): ₹1,15,133

Gold has been on a historic surge this year, rising by an impressive 56% in 2025 so far. In a major milestone, gold prices crossed the $4,000 per ounce mark for the first time last week, driven by global economic uncertainty, inflation concerns, and strong investor demand. With the festive season underway and demand at its peak, prices may continue to stay elevated.