2025 Gold & Silver Prices Drop: The Indian government has announced a major relief for gold and silver buyers this festive season by cutting the Goods and Services Tax (GST) on precious metals.
This move has led to an immediate drop in gold and silver prices across India, bringing excitement among jewelry lovers and investors alike.
The rate cut is expected to boost jewelry sales ahead of Diwali 2025 and wedding season demand.
GST Rate Cut on Gold and Silver
According to the latest update, the government has reduced the GST on gold and silver jewelry from 3% to 1.5%, making both metals more affordable for the common buyer.
This is the first major tax revision since the GST was introduced in 2017.
The decision aims to stimulate the jewelry industry, encourage transparency in trade, and curb smuggling activities that had increased due to high taxes.
Industry experts say the move could help stabilize the domestic bullion market and improve consumer sentiment.
The reduction in GST will also make hallmarked jewelry and branded ornaments more attractive compared to unorganized sector products.
Latest Gold Price in India (October 2025)
After the GST reduction, gold prices have seen a noticeable fall across major Indian cities.
As of October 2025, the 24K gold rate per 10 grams is approximately ₹57,800, while the 22K gold rate stands around ₹53,000.
Here’s a quick look at the latest average prices across key cities:
- Delhi: ₹57,950 (24K), ₹53,100 (22K)
- Mumbai: ₹57,780 (24K), ₹52,980 (22K)
- Chennai: ₹58,200 (24K), ₹53,400 (22K)
- Kolkata: ₹57,850 (24K), ₹53,050 (22K)
Gold prices are likely to remain stable in the coming weeks as global cues and festive buying balance each other out.
Silver Prices Drop Too
Silver, often seen as the “poor man’s gold,” has also seen a price correction following the GST cut.
The current silver rate is around ₹70,500 per kilogram, down from ₹72,800 last month. This price reduction is expected to revive interest in silver coins, utensils, and ornaments especially in Tier-2 and Tier-3 cities where silver demand is traditionally high.
Traders believe the price adjustment will help silver regain its position as a preferred investment metal during the festive season.
Jewelry Industry Reacts Positively
The jewelry market has welcomed the GST rate cut with enthusiasm.
Leading jewelers, including Tanishq, Malabar Gold, and Kalyan Jewellers, have already started offering additional festive discounts and exchange offers.
Many stores have reported a 20–25% increase in footfall within 48 hours of the announcement.
According to the All India Gems and Jewellery Trade Federation, this move could increase legal gold imports and help formalize the unorganized jewelry trade.
The lower tax rate will make it easier for middle-class families to buy gold for weddings and investment purposes.
Impact on Consumers
For buyers, the GST cut means lower overall purchase costs and better savings when buying gold coins, bars, or ornaments.
For example, on a ₹1 lakh jewelry purchase, customers will now save around ₹1,500 compared to earlier tax rates.
The decision comes just in time for Navratri, Dhanteras, and Diwali, making it one of the best times in years to invest in gold and silver.
Financial analysts suggest that the reduced GST will also positively impact digital gold purchases and jewelry exports.
Conclusion: 2025 Gold & Silver Prices Drop
With the government’s new GST rate cut on gold and silver, 2025 has started to shine brighter for both consumers and the jewelry industry. Prices have dipped, demand is up, and festive offers are flooding the market.
If you’re planning to buy gold or silver jewelry this Diwali, this might be the perfect time to make your move before prices rise again.
Always ensure to buy hallmarked jewelry from trusted sellers to enjoy both purity and peace of mind.