Image Source: Outlook Business
Indian gold jewellery sales have slowed significantly in April and early May 2025, with consumers struggling with record-high gold prices and lingering economic uncertainty. Although the Akshaya Tritiya festival had given a temporary boost to demand, total volumes of sales have been subdued, and customers have been putting off purchases or opting for lighter jewellery and investment schemes.
Gold Prices at Historic Highs
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Gold prices in India hit record highs in April 2025, touching a high of ₹1 lakh a 10 grams briefly, registering a 23–30% year-on-year growth and two-fold increase in the last five years.
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The rally across the world was driven by a falling US dollar, geopolitical tensions, and robust inflows into gold ETFs, making gold one of the best performing asset classes till date in 2025.
Subdued Jewellery Demand
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Volatile and high prices, combined with economic uncertainty, resulted in weak jewellery sales of gold, as most buyers postponed purchases or selected lighter, less expensive products.
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Gold jewellery sales volumes over Akshaya Tritiya, usually a high buying season, fell by about 15–30% from 2024, while sales value rose on the back of increased prices.
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Big and corporate retailers were able to draw more consumers with forceful promotions, but independent and small jewellers faced dwindling demand.
Shift in Consumer Patterns
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Most customers traded in older jewellery for new acquisitions, with gold exchange financing more than half of Akshaya Tritiya sales, from 30% two years ago.
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There was a strong trend towards lighter-weight jewellery and coins, particularly 5g coins, as customers aimed to keep within the budget while still celebrating festive and wedding events.
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Internet and e-commerce websites registered higher activity, mirroring an increasing penchant for structured and investment-focused gold products.
Regional and Segment Trends
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Southern India, where Akshaya Tritiya is of greater cultural importance, posted relatively stronger sales, while other areas witnessed more subdued demand.
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The bullion side (coins and bars) performed better than jewellery, with token buying becoming trendy for investment and gifting purposes.
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Even though the volumes were lower, the value of gold sold is likely to have increased, supporting the fact that Indian demand for gold has been resistant to price increases.
Outlook and Market Reaction
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The World Gold Council observes that several prospective buyers are sitting on the sidelines, waiting for prices to stabilize before making large purchases.
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Jewellers are responding by providing lighter jewellery, discounts on making costs, and marketing silver jewellery to price-conscious customers.
Investment demand for gold, both in the form of ETFs and digital gold, is increasing, with investors looking for safety under prevailing global economic and geopolitical uncertainties.
Sources: Economic Times, Financial Express, World Gold Council (gold.org), Business Standard, CNBC TV18, Fortune India
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