India’s Bullion Boom: Precious Metals Enter Record Territory
The Indian bullion market witnessed a remarkable surge this week as both gold and silver prices skyrocketed, marking one of the strongest rallies of the year.
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According to data from the Indian Bullion and Jewellers Association (IBJA), gold prices surged by ₹4,571 per 10 grams (4%) in just one week, while silver prices jumped an astonishing ₹18,890 per kilogram (12.9%) — driven by festive season demand, industrial consumption, and international uncertainty.
By October 10, 24-carat gold stood at ₹1,21,525 per 10 grams, up from ₹1,16,954 on October 3. Silver, meanwhile, climbed from ₹1,45,610 to ₹1,64,500 per kg, marking a 13% rise in just seven days.
Festive Season Drives Bullion Demand
India’s festival calendar is one of the biggest drivers of the gold and silver markets. With Dhanteras, Diwali, and Karva Chauth around the corner, jewellers have reported a notable surge in footfall and advance bookings.
Even though prices have touched record highs, demand has remained resilient — largely because buying gold during festivals is considered auspicious and symbolic of prosperity.
“Indian buyers tend to purchase even small quantities of gold during auspicious days. The sentiment remains strong regardless of price,” says Ramesh Mehta, President, Bullion Association of India.
Three Key Drivers Behind Gold’s Rally
Festive Demand Surge: Seasonal buying for weddings and Diwali has boosted demand despite record-high prices.
Geopolitical Tensions: Rising instability in the Middle East and ongoing global trade conflicts have pushed investors toward safe-haven assets like gold.
Central Bank Buying: Global central banks continue to diversify away from the U.S. dollar by adding gold to their reserves, driving global demand.
According to the World Gold Council, central bank gold purchases reached a multi-decade high this year, reflecting growing concerns about inflation and currency volatility.
Four Key Factors Behind Silver’s Steep Rise
Festive & Industrial Demand: Like gold, silver demand has risen during the festive season for ornaments and household items.
Rupee Depreciation: The weakening Indian rupee has increased import costs, directly impacting silver prices.
Rising Industrial Usage: Silver plays a critical role in electronics, solar panels, and EV manufacturing — sectors currently seeing robust growth.
Global Supply Constraints: Lower mining output and reduced recycling volumes have tightened global supply, intensifying the price rally.
“Silver’s dual role as a precious and industrial metal makes it extremely sensitive to both consumer sentiment and global economic cycles,” notes commodity analyst S. Subramaniam.
Silver Shines Bright: ₹19,000 Weekly Jump; Gold Up 4% — Festive Demand, Global Tensions, and Industrial Push Fuel Rally
2025 Price Trajectory: Gold Up ₹45,363, Silver Up ₹78,483 So Far
From December 31, 2024, to October 10, 2025, gold has appreciated ₹45,363 per 10 grams, while silver prices have soared ₹78,483 per kilogram.
Metal
Price on Dec 31, 2024
Price on Oct 10, 2025
Change
% Increase
Gold (24K)
₹76,162 /10g
₹1,21,525 /10g
+₹45,363
+59.6%
Silver
₹86,017 /kg
₹1,64,500 /kg
+₹78,483
+91.2%
Global Forecast: Gold May Hit ₹1.55 Lakh per 10g
Investment bank Goldman Sachs has projected gold prices could touch $5,000 per ounce by next year — equivalent to roughly ₹1.55 lakh per 10 grams at current exchange rates.
Similarly, domestic brokerage PL Capital expects gold to reach ₹1,44,000 per 10 grams in 2025, citing continued global uncertainty and sustained central bank buying.
Experts Advise Caution for Short-Term Investors
While gold has surged nearly 60% year-to-date, analysts caution that the short-term outlook may see some profit booking.
“Gold’s rally has been extraordinary, but we may see consolidation in the near term. Long-term investors can hold, but traders should be cautious,” says Ajay Kedia, Director, Kedia Advisory.
Silver, meanwhile, may continue its upward journey given its increasing industrial relevance — particularly in solar energy, electric vehicles, and semiconductor manufacturing.
Investment Outlook: Should You Buy Now?
Short-Term: High volatility expected; best to wait for correction before bulk buying.
Long-Term: Favorable due to macroeconomic uncertainty, inflation fears, and industrial demand growth.
Diversified Strategy: Experts suggest allocating 10–15% of total investment portfolio in precious metals, with 70% in gold and 30% in silver.
Consumer Awareness: How to Buy Smart
✅ 1. Buy Certified Gold Only
Always ensure your gold purchase carries a BIS Hallmark. From April 2025, the government mandates 6-digit alphanumeric HUID codes on all jewellery, ensuring authenticity and purity verification.
Each HUID code (e.g., AZ4524) is unique, identifying the manufacturer and purity of the gold.
✅ 2. Cross-Check Daily Prices
Check live gold and silver rates through reliable sources like the IBJA website or reputed jewellers before purchase. Remember:
24K = 99.9% pure (soft, not for jewellery)
22K = 91.6% pure (ideal for ornaments)
18K = 75% pure (used in designer jewellery)
Why This Rally Matters for India’s Economy
India is the world’s second-largest consumer of gold, and rising prices often impact the trade deficit. A surge in imports increases pressure on the rupee, while high prices affect household savings and jewellery exports.
However, experts note that India’s bullion ecosystem — from small jewellers to e-gold platforms — benefits from this price action through increased trading volumes.
Global Context: Inflation, Dollar Weakness, and Safe-Haven Rush
The ongoing rally in gold and silver is not limited to India. Across global markets, investors are seeking refuge from inflation, currency depreciation, and market volatility.
With U.S. interest rates expected to stabilize and geopolitical risks rising, analysts anticipate continued demand for non-fiat assets.
Precious Metals Shine Bright Amid Uncertainty
Gold and silver remain the most trusted hedges against inflation and global uncertainty. While short-term corrections are likely, the long-term fundamentals appear strong.
As India moves into its festive season, bullion traders expect another round of record-breaking sales — reaffirming the timeless emotional and economic connection Indians share with gold and silver.
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