JB Insights
Jewellery continues to play a dual role — fulfilling cultural needs and serving as a financial asset
As Diwali approaches, the jewellery market in India is witnessing a surge in demand for gold, silver, and diamond jewellery, reflecting both the festive spirit and evolving consumer preferences. Rising gold prices have not dampened enthusiasm; on the contrary, they have strengthened the perception of gold and silver as safe-haven investments. Across the country, jewellery continues to play a dual role — fulfilling cultural and emotional needs while also serving as a prudent financial asset. Retailers are witnessing shifts toward lightweight, versatile, and contemporary designs alongside traditional preferences, suggesting a dynamic and optimistic festive season for the industry.
Industry Perspectives
Safe-Haven Appeal of Precious Metals
Aksha Kamboj, National Vice President, IBJA & Executive Chairperson, Aspect Global Ventures “As Diwali approaches, the demand for gold and silver is stronger than ever, reflecting the festive mood of homes across India. The rise in price has not reduced the excitement but enhanced the allure of buying these eternal securities as safe investments. This trend is taking place due to increasing demand for safe-haven assets. In India, there has always been an amalgamation of festive shopping with tradition and for many, gold and silver fulfills both cultural needs and a wise option to invest.
It is recommended that buyers should take a balanced approach, encouraging the enjoyment of festival indulgence while remaining mindful of long-term financial goals. This Diwali, the glimmer of precious metals continues to signify not just wealth, but heritage, emotions and celebration as well.”
Shifts in Consumer Preferences
“Despite Gold hitting new highs, festive-season buying remains strong, driven by tradition, higher disposable income, and cultural affinity for gold. While demand dynamics are likely to remain consistent, consumer preferences are rapidly shifting towards lightweight jewellery, more for the purpose of adornment rather than investment. Driven by this trend, the festive season is expected to see a significant surge in demand for jewellery in the 9k to 18k segment, with a notable preference for heavier jewellery. Given the current market scenario, we foresee a festive surge of ~18% to 20% in overall sales.”
— Colin Shah, MD – Kama Jewelry
Emotional & Versatile Jewellery Demand
Joita Sen, Director, Head of Marketing and Designs – Senco Gold & Diamonds “At Senco Gold & Diamonds, Dhanteras is a celebration of emotions — of joy, prosperity, and togetherness, expressed through our exquisite range of gold, diamond, and platinum jewellery. This year, we’re delighted to offer our customers a beautiful fusion of tradition and modern design with our festive collections such as Shagun, Elements of Nature, Shakti & Lotus, and Aham — our men’s line, each perfectly suited for a Dhanteras purchase.
We’re witnessing a strong demand for precious yet lightweight pieces that are versatile enough for everyday wear and festive occasions alike, along with a growing preference for 9-carat jewellery that reflects a more practical, value-conscious way of celebrating. As we welcome this season of prosperity and new beginnings, we wish everyone a very Happy Dhanteras!”
Expanding Reach & Experiential Campaigns
“This festive season, we are delighted to expand our footprint and bring the Indriya experience to even more customers across the country. Our festive collection ‘Alka’, inspired by the beauty and bountifulness of Alkapuri — the mythical abode of Kubera, embodies the warmth and prosperity of the season. Our campaign beautifully captures this emotion through a story featuring Aditi Rao Hydari and Siddharth Suryanarayan, brought alive by a reimagined rendition of the timeless classic ‘Dil Abhi Bhara Nahi’. With the best gold rates and unmatched festive offers, we look forward to making this season truly memorable for our customers.”
— Sandeep Kohli, CEO Indriya – Aditya Birla Jewellery
Investor Sentiment and Lightweight Designs
“As Diwali 2025 unfolds, the surge in gold rates has reached new heights, instilling confidence in investors and consumers alike. The significant returns on gold investments have been a boon for investors, and this festive season, we’re witnessing a notable shift in consumer preferences. In response to the growing demand and rising gold rates, Shankesh Jewellers is focused on offering an exquisite collection of lightweight, handcrafted gold jewelry in 18k and 22k. Our designs cater to the evolving tastes of our discerning customers, ensuring that they can make the most of this auspicious season.”
— Mahavir Jain, Director – Shankesh Jewellers Limited
Revived Consumer Sentiment
“Volume growth has started coming in after the start of the festive season. Until Navratra, we saw a lot of customers stay away, and therefore, volume growth was not visible. But now that people have realized that the price of gold is here to stay and is going up, all those fence-sitters have started coming back. The sentiment is clearly back. There is a bullion shortage in the country. We have planned for it adequately, but I won’t be surprised if we run out of coins. There is a worry among customers that there may be a shortage of gold.”
— Ajoy Chawla, CEO, Jewellery Division – Titan Co Ltd
JB Insights
Gold Loans Fuel MSME Expansion
Industry Seminar Focuses On E-Commerce Growth, Logistics Solutions and Global Shipping Opportunities For The Gem and Jewellery Sector
Across India, gold loans are rapidly shifting from purely personal-finance products into a go-to source of working capital and business-expansion funding for MSMEs, with non-bank lenders such as Muthoot Finance playing a central role in this transition. Record-high gold prices and easier documentation, combined with short-term tenures and relatively quick disbursal, are making gold-loan collateral attractive for small manufacturers, traders, and services-sector entrepreneurs who struggle to access traditional bank credit.
Gold loans have become a key contributor to India’s consumption-loan growth, with originations surging amid slowing personal-loan and credit-card growth and elevated gold prices improving collateral coverage.
Rating agencies and brokers note that high gold prices not only allow larger loans against the same jewellery but also help maintain asset quality, as borrowers are more incentivised to repay rather than forfeit precious metal.
Why MSMEs are turning to gold loans
- Many MSME borrowers use family-held gold as collateral to finance working-capital gaps, inventory purchases, machinery upgrades, or local-market expansion, especially where cash-flow cycles are irregular or credit history is thin.
- Gold loans typically offer lower interest and faster processing than unsecured personal loans or credit cards, and the presence of a tangible asset (gold) makes lenders more comfortable with shorter-tenor, higher-ticket loans.
Role of organised lenders like Muthoot Finance
- Muthoot Finance and other large NBFCs explicitly position gold loans as flexible, short-term credit for “business-related” needs, including trade, small-scale manufacturing, and micro-retail, and have reported that a significant share of new disbursements go to self-employed professionals and small business-owners.
- Digital-first interfaces, branch-network expansion into semi-urban and Tier-2/3 towns, and features such as missed-call status checks and mobile-based payment reminders help MSME-type borrowers manage repayments without frequent visits to branches.
Regulatory and risk-management angle
- Regulators and rating agencies note that channeling gold-loan funds toward productive MSME activity can improve asset quality, as business cash flows often support repayment better than purely consumption-driven loans.
- At the same time, tighter supervision on re-pledging and stricter documentation—from April 2026 onward—are pushing MSME borrowers toward organised players, reducing reliance on informal pawn-shop-style lending and improving transparency in SME-oriented gold-loan portfolios.
Market-level impact
- With the organised gold-loan market expected to breach ₹15 lakh crore by March 2026, MSME-oriented lending is emerging as one of the key growth segments, particularly for NBFCs that combine branch-level trust with digital ease.
- This trend is encouraging gold-loan houses to design quasi-MSME packages—such as higher ticket-sizes, flexible moratoriums around festival seasons, and payment-tracking tools—while keeping the underlying product clearly tagged as a secured gold-loan.
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