India’s traditional festive-season rush for gold jewelry is losing its sparkle this year, as record-high bullion prices force buyers to rethink purchases in the world’s second-largest consumer market.
According to the India Bullion and Jewellers Association, jewelry demand during the three-week buying period spanning Navratri to Diwali could fall by nearly 27% in volume compared to last year. Consumers, particularly in urban centers, are postponing or scaling back their spending, said Surendra Mehta, the association’s national secretary.
Gold has long been central to Indian weddings, gifting rituals, and investment portfolios. Festivals like Navratri, Dhanteras, and Diwali usually mark the busiest buying window of the year, with shops staying open until midnight to meet the surge in demand. But this season, local bullion prices have crossed the symbolic one-lakh-rupee mark — about ₹100,000 ($1,128) per 10 grams — almost 50% higher than last year’s festive period.
The sharp rise is also mirrored globally, where spot gold touched a record $3,791.10 an ounce this week, more than double its price just two years ago.
The strain on Indian demand has been visible throughout 2025. Jewelry purchases between April and June fell 17% year-on-year, and the World Gold Council expects full-year consumption to slip to its lowest in five years.
To cope, shoppers are shifting to smaller, lighter ornaments. “Customers are sticking to budget-friendly pieces,” said Delhi jeweler Arham Ahmad. “Some are buying jewelry as light as 2 grams. Demand for heavier designs has been weak for quite a while.”
With jewelry accounting for nearly 70% of India’s gold consumption, this year’s festival slump may prove especially painful for retailers whose annual revenues hinge on these crucial weeks.
Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.
