“The festive season is usually the peak period for gold demand in India due to culture, religion, and emotions. Even at all-time high prices, consumers are motivated to acquire gold, although their purchasing habits are shifting,” said Renisha Chainani, Head of Research at Augmont.
She noted that buyers are opting for lightweight gold, 14-18 karat jewellery, coins, and digital gold.
Urban investors are also showing more interest in ETFs and gold saving schemes, while tier-2 and tier-3 consumers continue to buy small-ticket jewellery.
Chainani added that jewellery brands might see sales volumes flat or slightly down by 5-10% year-on-year due to price sensitivity.
“However, the higher price points are likely to stabilise or even increase overall revenue. Gold purchases during Navratri, Dhanteras, and Diwali are still considered non-negotiable and auspicious,” she said.
Colin Shah, MD of Kama Jewelry, emphasised that the recent surge in gold prices has been driven by global factors, including geopolitical tensions, trade uncertainties, US tariff changes, and Fed rate cuts.
“While such sharp increases have dampened short-term retail consumption, the cultural and emotive value of gold ensures continued demand during festivals and weddings,” he said.
Recent trade insights also indicate strong industry confidence.
The 13th Delhi Jewellery & Gem Fair (DJGF) 2025, held in New Delhi in September, saw packed aisles and participation from over 600 exhibitors and 1,200+ brands.
Yogesh Mudras, MD of Informa Markets in India, highlighted the timing: “The exhibition comes at a crucial moment for India’s gems and jewellery market, enabling businesses to navigate market shifts and seize emerging opportunities during the festive season.”
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