Double the Benefit This Dhanteras: Get 25% More Gold for an Investment of ₹1 Lakh

The price of 24-carat gold has fallen by approximately 20% from its peak in January, allowing you to purchase about 25% more gold for ₹1 lakh than you could have back then.

Dhanteras is approaching, an occasion traditionally considered auspicious for purchasing gold. If you are planning to buy gold this Dhanteras, the current prices will come as a welcome relief. Gold has dropped significantly from the peak levels seen in January; consequently, an investment of ₹1 lakh today will fetch you 25% more gold compared to what it would have bought in January.

At the end of January, spending ₹1 lakh on 24-carat gold would have yielded approximately 5.7 grams. Today, the same amount can buy you about 7.1 grams. According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold stood at ₹1,40,054 per 10 grams on Friday. In contrast, on January 29, the price was ₹1,75,340 per 10 grams. This means gold is currently trading 20% ​​below its record high from January. The decline is even more pronounced on the Multi Commodity Exchange (MCX); data shows that December gold futures closed at ₹1,38,419 per 10 grams on Friday—roughly 23% lower than the January peak of ₹1,80,779.

Prices Were Even Lower Last Year

Gold is certainly cheaper now than it was in January, and your expectation that purchasing gold this Dhanteras could prove profitable is well-founded. However, before you get too excited, consider another aspect: last Dhanteras, on the final working day before the festival (October 17, 2025), the price of 24-carat gold—according to the IBJA—was ₹1,29,584 per 10 grams. At that price, ₹1 lakh would have bought 7.7 grams of gold. Today, gold is approximately 8% more expensive, meaning the same amount of money will now fetch about 7.5% less gold.

Investors who purchased gold last Dhanteras are still seeing some gains. Conversely, those who bought at the peak price in January are currently facing a loss of about 20%; an investment of ₹1 lakh made at that time is now worth approximately ₹79,900. Note that these benchmark rates do not include 3% GST or making charges for jewellery.

Should you invest now or wait?

Many analysts suggest that this market correction presents an opportunity for long-term investors—though this does not mean they should deploy all their capital at once.

A report by NDTV Profit, citing Shiva Grover—founder of Equitrust Solutions—in 'The Daily Jagran' on Friday, advises that new investments should be made in instalments rather than as a lump sum. While noting that this downturn offers promising opportunities for those with a multi-year investment horizon, Grover also cautioned that market volatility may persist until the stance of the US Federal Reserve becomes fully clear. Overall, while gold may currently appear attractive at ₹1,40,054—down from ₹1,75,340 in January—it is impossible to predict with certainty whether the market will fall further or begin to rebound from this point. If you invest your entire ₹1,00,000 into gold and prices subsequently drop by another 5%, you will incur a loss. Conversely, if you spread this amount across an SIP (Systematic Investment Plan) spanning 4 to 5 months, any further decline in prices will allow you to acquire a greater quantity of gold for the same investment amount in the following months. In financial terminology, this is known as 'Rupee Cost Averaging.'