How record gold prices are reshaping demand in the Indian market

The record-breaking surge in gold prices is transforming long-standing traditions in India. As one of the world's largest consumers of the precious metal, the Indian population is shifting away from expensive jewellery this festive season, opting instead for investment-grade gold coins and bars, Reuters reports.

According to analysts, this trend is cushioning the drop in overall gold demand and is likely to persist through 2026. Buyers now view the additional 15% making charges on jewellery as an unnecessary expense. Furthermore, budget-conscious consumers are increasingly choosing lightweight designs and lower-purity gold, such as 14-carat and 18-carat options.

Data from the World Gold Council (WGC) shows that during the first nine months of 2025, jewellery consumption in India fell by 26%, while gold investment grew by 13%. As a result, investment gold accounted for a record 40% of total demand. Industry experts predict that as prices continue to rise, public interest in gold—not just as an ornament but as a reliable store of wealth—will continue to grow.