Gold's Glittering Jeopardy: The Volatility Behind Jewellery Market Trends
The gold jewellery market is facing a decline of 9-10% in 2025-26 due to a 33% surge in prices. Despite this drop, the demand for bars and coins continues to rise, reflecting investor preference amidst global uncertainties. Organised retailers are likely to boost revenues through market expansion.
- Country:
- India
Gold jewellery consumption in India is poised for a significant downturn, with a projected 9-10% decrease in the 2025-26 fiscal year. This decline is primarily attributed to a 33% surge in gold prices, according to a recent report by Icra.
The appetite for gold bars and coins, however, remains strong, with a 17% and 25% increase observed in the fiscal years 2024 and 2025, reflecting investors' renewed interest in safe-haven assets amid turbulent global economies and geopolitical instability, the report highlights.
In contrast, organized retailers are anticipating 14-16% revenue growth due to factors like continued gold price appreciation and market share expansion from unorganized sectors. This sector is further supported by cultural practices and significant market days despite prevailing high prices and falling volumes.
(With inputs from agencies.)
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