Gold prices soar 67% this year, smuggling attempts resurface
Gold prices in India have shot up 67% this year, reaching ₹1,28,395 per 10gm on October 16, 2025.
The jump comes right as Dhanteras and Diwali boost demand, but official gold supplies are tight.
Even though a big import duty cut last July helped curb smuggling for a while, these new highs have already tempted smugglers back into action, with several recent attempts foiled at Indian airports.
Profits still tempt smugglers
Smuggling cases dropped this year—3,005 cases and 2,600kg seized in 2024/25, about half of last year's numbers—but the profits are still huge.
Smugglers can pocket over ₹1.15 million per kilogram by dodging taxes, so the risk is still worth it for many, despite tighter airport and border checks.
Premiums jump to $25 per ounce
With official gold in short supply, premiums have jumped to $25 per ounce—the highest in 10 years. This makes the informal market even more tempting.
Authorities are staying alert, but changing smuggling tactics keep things challenging as the market tries to balance demand and enforcement.