Gold rush ahead of Diwali: Buyers prefer bars and coins over jewellery; here’s what traders says

Gold prices surged to an all-time high ahead of Diwali and the wedding season, with buyers showing a growing preference for solid bullion such as coins and bars rather than traditional jewellery, traders said on Thursday. The price of gold on MCX touched Rs 1,28,395 per 10 grams during the day.“Gold prices are increasing every day, and people are looking at this and coming in to invest. Demand for jewellery has slowed, but people are buying gold bars and coins. We are seeing a lot of demand for gold and silver bars in this festive season and ahead of the wedding season,” said Vrishank Jain, owner of Umedlal Tilokchand Zaveri Jewellers in Mumbai’s Zaveri Bazaar, quoted PTI.Many buyers are locking in current rates through advance bookings or by purchasing coins, anticipating further rises in gold and silver prices, Jain added.Consumers often view gold as a long-term investment, while it also holds deep cultural significance, especially during festivals like Dhanteras and wedding seasons. Devras Bhai Parmar, a regular buyer, told PTI “Buying gold during Diwali is considered auspicious, and it is an investment. In times of emergency, we can get cash in exchange for gold. It’s a tradition in my family to buy gold every Diwali.”Kumar Jain, spokesperson for the Indian Bullion Jewellers Association, noted that recycled gold from weddings and rising geopolitical tensions – including the US trade war, the Ukraine-Russia conflict, and Middle East unrest – are driving the surge.Sharmila, another customer, shared her view: “Despite the price surge, I will still buy this time, maybe a little less in quantity. I want to teach my kids about the tradition of buying gold on auspicious occasions, and how it’s an investment for the future. Unlike a car, which depreciates, gold can double in price.”