The India Bullion and Jewellers Association (IBJA) just shared some thrilling news. In fact, they are estimating that within this celebratory season alone, gold sales in India will total nearly 40 metric tons! This infographic indicates that happy holiday gold sales volume is going to remain consistent. It would almost assuredly be as bad as last year’s abysmal figures. With unpredictable spikes and drops in gold sales monthly, the IBJA forecasts a bullish consolidation phase, particularly on the cusp of this traditionally auspicious period for gold buying.
In India, gold is deeply embedded into cultural traditions, especially seen during festivals and weddings. We know that the association has seen a very dramatic shift to consumers using their phones starting in August. After almost a year of not buying gold, consumers returned to the market. One Indian woman created a stir by going out and buying gold jewelry for her son’s wedding. This courageous step marks a clear return to festive demand for the yellow metal.
This sudden demand for gold is a representation of the counter-cyclical trends occurring within the market, where volatility has become the new normal. The IBJA’s predictions continue to reflect a buyers’ market, with tempered hopefulness. All of them are anxious to protect their investments at this busiest time of year. Sales volume will be little-changed from last year. This shows that consumers are reevaluating how they spend their money, balancing what they want with higher costs and the state of the economy overall.
It’s common for consumers to buy more gold during the festive season, when families move their investments into gold jewelry to mark celebrations. The IBJA estimates that Indian households alone own 20,000 metric tons of gold. This reinforces the enduring importance of gold, even amid shifting market dynamics.