India

Gold Price Drop Fuels Diwali Shopping Surge in Pune

By IE Online

A sharp decline in gold prices just before Diwali has spurred a rush to jewellery shops across Pune, as customers combine the traditional appeal of Dhanteras with a chance to buy after months of record‑high prices. BankBazaar’s Pune gold‑rate data shows 22‑carat gold fell from Rs 1,05,960 per 8 grams on October 29 to Rs 1,02,240 on October 31, a drop of Rs 3,720. The rate stayed at that level on November 1 before gradually rising to Rs 1,03,000 on November 4. Jewelers say the reduction has encouraged customers who were already planning purchases for Diwali and Dhanteras to make their purchases now.

"People buying gold when prices were high did not reduce, but the buying trends changed. People who were earlier buying 10 grams have now shifted to seven grams because of the earlier price rise," said Ritesh Jadav, manager at Chandrakant Saraf Jewels on Paud Road. He added that demand remains particularly strong during Diwali and Dhanteras and that younger buyers, especially Gen Z, are showing greater interest in minimal‑looking jewellery. The expectation that prices could rise again has also encouraged some buyers to purchase despite the earlier high rates. "People have different perspectives. Some think the rate will increase further and therefore buy now," said Ankit, manager at BlueStone Pure Jewellery, Paud Road.

With Diwali coinciding with the recent price correction, he said customers have another reason to buy. "Because of Diwali, Dhanteras and the price reduction, people are buying more before it increases again," he added.

For many families, however, gold remains a purchase that goes beyond market movements. Fatechand Ranka, president of the Pune Saraf Association, said gold continues to be regarded as a financial safety net. "Gold is the best item to be used for emergencies. Families always buy gold during Diwali. There is high demand for gold during festivals and at other times as well," he said.

Gold valuer Rushikesh Yewalekar said fluctuations generally affect buying only when they are particularly pronounced. "When gold fluctuates a lot, only then do people not buy. Otherwise, people always buy gold," he said.

For buyers, the price movement has added an extra incentive to an established Diwali tradition. Aryan, 54, said his family buys gold every Diwali, particularly on Dhanteras. "Regardless of the price, we always buy something. This year, surprisingly, for the first time the price was reduced during the festival. This has created a big surge of people coming to buy," he said.

Rachana Yadav, 60, who came shopping with her family, said the reduction had strengthened their decision to invest. "We kept buying when the price was high as well, but now there is a further incentive for us to buy more as a long‑term investment. It is a common thumb rule in every Indian family that the best investment is always in gold," she said.

For Pune’s jewellers, this Diwali’s gold rush is being driven by a combination of tradition, investment thinking and timing. Even when prices climbed, buyers continued to enter the market. The recent correction has simply given many of them another reason to walk through the doors.