The narrow lanes of Zaveri Bazaar, one of the oldest jewelers' markets in India's financial capital, Mumbai, grew even more congested this Diwali as crowds jostled to buy gold on the auspicious first day of the festival of lights.

But there was a twist.

Most of the people thronging the market were there to buy gold coins or bars — not jewelry — Mahavir Kothari, a wholesaler of precious metals in Zaveri Bazaar told CNBC.

Leading gems and jewelry trade bodies in India told CNBC that more than 40 tons of gold was sold in the country on Oct. 19, the first day of Diwali.

About 700 billion rupees ($8 billion) to 1 trillion rupees ($11 billion) worth of gold was sold during the five-day festival that ended Thursday, according to India Bullion and Jewellers Association, or IBJA, and All India

See Full Page