JB Insights
Jewellery industry optimistic despite rising gold prices
As India prepares for Diwali and the wedding season, the jewellery industry is feeling optimistic, even with high gold prices. Experts say customer preferences are changing, and retailers are ready with new collections to meet different tastes. This festive season, people are looking for jewellery that is meaningful, well-crafted, and timeless. Handcrafted gold, diamonds, modern platinum, and silver are especially popular. With the festive mood and wedding season ahead, the jewellery industry expects good sales and a strong season.
Kirit Bhansali, Chairman, GJEPC. said “While gold prices have risen, we remain optimistic about the festive season. Diwali is a time of celebration and auspicious purchases, and consumer enthusiasm for jewellery remains strong. Higher gold prices may lead to a slight dip in volumes, but they also encourage consumers to explore other precious metals such as platinum and silver, which are gaining popularity for their contemporary appeal and affordability.
Retailers are ready with innovative collections across all categories to meet evolving preferences. Supported by the festive spirit and the upcoming wedding season, we anticipate a healthy season for the jewellery industry, reflecting resilience and strong consumer confidence.”
Steady Growth Amid Price Peaks
“Even though gold prices are at their peak, consumer trust in gold as a safe and timeless investment remains strong. Customers are looking at jewellery not only for its aesthetic and cultural value during Diwali but also as a secure asset for the future. The overall sentiment is positive, with families prioritizing meaningful purchases that combine tradition with financial wisdom. We believe this balance of emotion and practicality will drive healthy demand in the festive months ahead,” noted Saket Keshri, Director (Operations), Ratnalaya Jewellers.
Positive Consumer Sentiment Drives Footfalls
Dr. Saurabh Gadgil, CMD, PNG Jewellers, said “Dussehra heralds the beginning of the auspicious buying season, closely followed by weddings and Diwali. This year, the sentiment across the gems and jewellery industry is extremely positive, with investment-led demand for gold and silver showing a clear upward trend, which in turn should translate into robust footfalls at our stores. Bookings in lightweight jewellery are encouraging, while old gold exchange continues to sustain demand, currently contributing nearly 50–55% of sales.
Overall, we see the season opening on a very positive note. The current bullishness in gold and silver prices has sparked fresh interest in investment demand, especially for coins and bars, where we are already witnessing healthy offtake. Diamonds too have shown steady traction in the run-up to the festival,”
Changing Preferences Among Consumers
MP Ahammad, Chairman, Malabar Group, said“The 2025 festive season has begun on a positive note for us. Although the intent to buy gold remains steady, consumers are also adjusting their preferences. There has been an increased preference among certain customer segments towards lightweight and lower-carat pieces that align with modern lifestyles and budgets.
Studded and gemstone pieces are also becoming popular amongst Millennials and Gen Z as they exude contemporary design appeal. In addition, we are seeing certain consumer segments opting for 18K or 14K jewellery that offers price flexibility and style. With GST reforms boosting consumption as well as easing of inflation, we expect the consumer sentiment to become stronger during Diwali”
Handcrafted Appeal and Silver Growth
“This festive season, customers are choosing jewellery with emotion, craftsmanship, and timeless appeal. There’s a clear preference for handcrafted gold, elegant diamonds, contemporary platinum, and refined silver. Jewels and articles steeped in meaning, crafted with care, and destined to be treasured. Silver gifting and corporate orders are also on the rise as brands look to celebrate relationships with substance and style. At Punjab Jewels, our commitment to purity, design, and trust is resonating deeply across Central India. The mood is optimistic, the season is vibrant, and we’re expecting strong, broad-based growth across all categories,” said Ansh Anand, CEO, Punjab Jewels.
Innovation and Modern Preferences
“This festive season, the jewellery industry expects strong demand due to escalating gold prices, and there is a panic mood among consumers that the gold price may go further up. With the harbinger of wedding season, there is a sudden surge for jewellery, and the interest has shifted more towards lightweight, fusion, and silver jewellery. There is also a consumer preference towards value and modern aesthetics. Consumers are turning more towards silver as an affordable option in comparison to gold. Also, we sense that there is a focus on innovation in design, such as fusion temple jewellery. Understanding the mood of the consumers, many brands have increased their advertising spend to boost visibility and sales,” said Jayantilal Challani, Chairman, Challani Group of Companies.
Silver Segment Gains Momentum
“We, at Bidhan Jewellery Works (BJW), have always been affirmative of the customer sentiments in the market. With the sudden surge in gold prices, customers are reluctant to make initial purchases. We are also noticing the trend that our top customers have kept their purchases the same, and this is a positive sign. Our silver jewellery segment is noticing a good spike in demand, and we are also very hopeful with our silver line of jewellery. Bidhan Jewellery Works (BJW) wishes everyone a very happy and prosperous Diwali and prays for the wellness and betterment of everybody,” said Ipsit Karmakar, Director, Bidhan Jewellery Works.
Diamonds and Tiered Market Growth
Richa Singh, MD, India and Middle East, Natural Diamond Council. said “This festive season, we are expecting encouraging consumer sentiment across India for natural diamonds. With the rising price of gold, consumers are ready to assess options. From conversations with our partners, there is an indication of double-digit growth of about 18–20% across top cities. In tier 2 and tier 3 cities, traditional gold consumers are also beginning to explore studded jewellery. Across India, particularly in the sub–two lakh category, natural diamond jewellery is emerging as the preferred choice for gifting and everyday wear.
Natural diamonds are expected to see steady demand this festive season, not just as symbols of luxury, but as everyday expressions of love. We believe this momentum will only deepen, making real diamonds the most meaningful way to mark life’s brightest moments.”
Consumer Trust and Thoughtful Purchases
“This festive season, we are optimistic about jewellery sales. Diwali has always been a time when families come together and celebrate with gold and gifts. Even with changing times, the emotional value of gold remains strong. We see customers being thoughtful in their purchases—looking for quality, trust, and value. Light-weight jewellery and daily wear pieces are seeing more demand, along with traditional items for weddings. At Bhima, we are ready with a wide range to suit every budget. We expect steady growth this season, driven by faith, tradition, and festive spirit,” said Dr. B. Govindan, Chairman, Bhima Jewellery – Trivandrum.
Platinum Gains Favor Among Younger Consumers
Vaishali Banerjee, Head of Global Market Development and MD, said “The festive season is always a time of deep emotional significance, and this year, we are seeing consumers lean towards jewellery that embodies meaning, aspiration, and enduring value. Younger audiences in particular are gravitating to platinum because of its inherent qualities – its exceptional rarity, 95% purity, natural whiteness that enhances brilliance, and strength that makes every piece a modern heirloom.
Platinum is among the most precious of metals in the jewellery world — a true store of enduring value. Its price has risen by 57% year-to-date, yet it still remains significantly more affordable than gold.This creates a compelling opportunity for consumers to own a piece of one of the rarest and most valued metals. Platinum jewellery stands apart as an aspirational yet uncompromising choice, delivering exceptional value without compromise. Retailers too are experiencing robust interest, making us optimistic that platinum jewellery will see strong momentum this festive season.”
Since the publication of our Why gold in 2025? A cross-asset perspective report earlier this year, much has happened on the policy front and in the broader economy. Uncertainties and vulnerabilities remain across geopolitical, fiscal, and trade domains. Investors are particularly concerned about growth and inflation, creating a challenging situation for policymakers as the dual policy goals of the Federal Reserve are in direct conflict. With persistent fears of stagflation, gold has once again stepped into the spotlight, rising more than 50% this year.1 Importantly, the core reasons for considering alternative assets such as gold, as outlined in our May report, remain largely unchanged.
First, equities appear complacent. US equities have posted remarkable gains in recent months, reigniting concerns about valuation excess and concentration risk. Indeed, investors face a market that feels euphoric on the surface but remains fragile underneath. Should economic pressures mount , investors may increasingly seek refuge in safe-haven assets, with gold standing out as a historically resilient option, as outlined in our mid-year outlook.
Second, bond markets remain uncertain. The Fed officially resumed its easing cycle in September, cutting the federal funds rate by 25 basis points in response to a cooling labour market (Chart 1) – an action widely anticipated by markets. However, US long-term yields could face renewed upward pressure if tariffs and reshoring efforts drive domestic costs higher, complicating the Fed’s inflation target. At the same time, long-term treasuries remain exposed to concerns over the Federal Reserve’s independence and the US government’s sizeable fiscal funding needs.
Against this backdrop, gold’s appeal as a hedge against both equity and bond market instability is growing – though risks exist. As we discussed in our recent blog, gold’s rapid ascent could prompt rebalancing and profit taking. For example, from a technical standpoint, the monthly Relative Strength Index (RSI) is above 90 and gold is sitting more than 20% above its 200-day moving average. These factors could lead to short-term reversals. In addition, the sharp increase in the gold price could dampen consumer demand while global trade normalisation and a pick-up in GDP growth could revive risk appetite further.
In summary, maintaining a diversified approach and remaining vigilant to shifting market dynamics is essential. Amidst a growing investor base, secular US dollar weakness and continued geoeconomic uncertainty, gold’s enduring resilience and diversification benefits remain as relevant as ever.
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