According to a LocalCircles survey released on November 5, 2026, 29% of consumers planning to buy gold this Dhanteras intend to purchase it through informal channels offering lower prices, rather than from jewellers issuing proper bills. The survey received 21,651 responses and found that 71% would purchase gold from a jeweller with a proper bill. Informal channels can include under-the-counter cash transactions and purchases from dealers selling gold without proper invoices, though not every unbilled sale necessarily involves illegally imported gold. The report cautioned that gold purchased through informal channels usually comes without proper invoices or hallmarking, potentially leaving buyers with limited recourse if questions arise over its purity.
The findings come amid a resurgence in gold smuggling following the government's decision to increase import duty on gold from 6% to 15% on May 13, 2026, with the objective of conserving foreign exchange and reducing pressure on the rupee. With GST included, the report estimated the total levy on imported gold at approximately 18.45%. The higher duty, along with GST, has widened the price difference between officially imported and grey-market gold, making smuggled gold relatively cheaper. According to the World Gold Council's Q3 2026 Gold Demand Trends report, unofficial gold inflows surged more than 1,500% year-on-year to around 50 tonnes in July-September, compared with approximately 3 tonnes in the corresponding period last year. The government was considering reducing gold import duty from 15% to 6% following concerns raised by bullion traders and jewellers about increasing smuggling, though no decision had been announced as of November 4, 2026.
The LocalCircles survey also sought consumers' views on measures to curb the sale of smuggled gold in India. 37% of respondents favoured a crackdown on gold smuggling networks, while 29% wanted the government to review import duties to discourage smuggling. Another 17% called for strict action against sellers of smuggled gold, and 12% favoured combining stronger enforcement with policy changes. 5% preferred consumer awareness campaigns against purchasing gold without bills. Overall, 66% of respondents favoured stronger enforcement, either on its own or alongside policy changes. The report noted that dealers expected illegal gold inflows to exceed 100 tonnes in 2026, compared with approximately 20 tonnes in 2025.
High prices have affected India's gold consumption ahead of Dhanteras and the wedding season. According to the World Gold Council's report, India's gold demand declined 29% year-on-year to 162.5 tonnes in the July-September quarter. Jewellery demand fell 20% to 99.9 tonnes, while demand for bars and coins dropped 40% to 55 tonnes. In value terms, however, gold demand rose 3% to around ₹2.42 lakh crore, reflecting the impact of higher prices. The World Gold Council projected India's full-year gold demand at 625-675 tonnes. The report noted that jewellers witnessed subdued Dussehra sales and were looking towards Dhanteras and the wedding season for a recovery, with consumers opting for lighter jewellery pieces and exchanging old gold.
The LocalCircles survey was conducted across 312 districts and received more than 42,000 responses from household consumers. The findings were based on responses collected through its platform, with the survey question receiving 21,651 responses regarding purchase channels and 20,471 responses regarding measures to curb smuggling. The report highlighted that 24-carat gold was trading at approximately ₹1.40 lakh per 10 grams in India, compared with a peak of around ₹1.78 lakh earlier in 2026, while international gold prices declined 6.8% in October to below $4,000 per ounce.
