Festive Gold Buying Shifts to Lighter Pieces as Prices Stay High
What Happened
Gold prices in India have surged nearly 60% year-on-year, crossing ₹1.57 lakh per 10 grams of 24K gold in September 2026. This has led to a 10–15% decline in jewellery sales volumes, according to industry reports. Jewellers note that while customers remain committed to buying gold during festivals and weddings, they are increasingly opting for lighter-weight jewellery, lower-carat options, and old-gold exchanges to manage affordability. Investment demand is also rising, with coins, bars, ETFs, and digital gold gaining traction. Despite lower volumes, jewellers expect overall revenue to hold up because of the higher value per unit sold.
Key Takeaways
High gold prices are changing the composition of demand rather than eliminating it. Consumers are trading down in weight but not walking away, ensuring jewellers still benefit from festive buying, albeit with smaller baskets and more investment-style purchases.