Consumers marked one of India’s most significant gold-buying occasions with a more measured approach, as record-high prices prompted a shift in buying behaviour. While overall volumes remained under pressure, higher price points lifted the value of transactions.
“The sharp rally in prices has curbed jewellery demand in volume terms, even though spending has increased due to elevated prices,” said Amit Modak, chief executive of PN Gadgil and Sons, a Pune-based jeweller.
Gold prices, which touched record highs earlier this year, continue to hover at elevated levels, influencing consumer decisions. In the domestic market, futures prices remain significantly higher compared to last year’s festival levels, contributing to a cautious buying sentiment.
Industry participants reported that demand was uneven across regions, with relatively better traction in parts of southern India, while other regions saw softer footfall.
“Demand has been lower than usual in most parts of the country, barring a few southern markets,” said Surendra Mehta, National Secretary at the India Bullion and Jewellers Association.
Even as traditional heavy jewellery purchases slowed, consumers gravitated towards coins and lightweight products, which offer greater liquidity and affordability. Jewellers attempted to stimulate demand through discounts on making charges and promotional offers.
At a structural level, buying patterns continue to evolve. Data from the World Gold Council shows that India’s jewellery demand declined sharply in the previous year, while investment demand rose to multi-year highs, reflecting a shift towards gold as a financial asset rather than purely a consumption product.
Market participants noted that purchases are becoming more distributed through the year, with consumers timing their buys around price corrections instead of concentrating demand solely during festivals.
However, segments within the industry reported resilience.
According to Colin Shah, MD, Kama Jewelry, a moderation in prices during parts of the season supported buying sentiment, particularly among younger consumers.
“There is a growing preference for lightweight and practical jewellery, including diamond-studded pieces in lower karat categories,” he said, adding that overall sales saw a double-digit year-on-year increase.
Retail chains also indicated steady momentum.
Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers, said demand remained strong across multiple regions, driven by a mix of bridal purchases and traditional offerings such as coins and lightweight designs. He added that extended auspicious timings and improved accessibility, including quick-commerce integrations, supported customer participation.
Silver demand, meanwhile, continued to gain traction, with growth observed across coins, artefacts, and jewellery segments, positioning it as a complementary purchase alongside gold.
In a parallel development, the government issued a revised list of banks authorised to import gold and silver, easing operational constraints for institutions that had paused imports due to earlier delays.
–With Reuters inputs
