JB Exclusive

JewelBuzz spoke to trade and industry leaders who said thatstrong consumer affinity for gold as a safe-haven and emotional asset, and high demand for lightweight, design-focused offerings are driving renewed momentum. Although higher price points may decrease overall volume (by weight), total revenue and consumer trust in gold as a store of wealth remain strong.

The Indian retail jewellery sector is approaching the crucial Diwali, and upcoming wedding seasons with a mixture of pragmatic caution, strategic innovation, and underlying optimism.

Following a period of sluggish sales driven by record-high gold prices and market volatility, industry leadership expects a noticeable turnaround. Decreasing or stabilizing gold prices, strong consumer affinity for gold as a safe-haven and emotional asset, and high demand for lightweight, design-focused offerings are driving renewed momentum.

While overall physical volume (by weight) may remain subdued or flat compared to previous years, overall sales value is projected to grow anywhere from single/low-double digits up to 20%–25%, depending on retail positioning and product portfolio.

Key Market Dynamics & Consumer Trends

1. Sluggish Past Months & Strategic Pivots to Lightweight Collections

Prior to the festive onset, retail sales experienced a downward trend due to price volatility. However, jewellers are actively countering this by shifting focus toward lightweight gold, close-set natural diamonds, silver artifacts, and platinum lines. As N. Anantha Padmanaban (Chairman, NAC Jewellers) notes:

“Sales has been on the downward trend due to various reasons for the past few months, but we are expecting good sales with gold prices coming down during Navratri & Diwali…”

Retailers are innovating across price points to capture value-conscious shoppers. NAC Jewellers, for instance, has introduced lightweight gold options such as the traditional cow-themed Surabhi collection, lightweight silver lamps for Dhanteras, and close-set diamond lines to stimulate demand.

2. Emotional Connection & Bridal Resilience

Despite elevated rates, consumer trust in gold as both an emotional asset and cultural anchor remains steadfast. Addressing the underlying consumer sentiment, Dr. Pratap Madhukar Kamath (MD, ABARAN) emphasizes:

“We remain highly optimistic about jewellery sales during the ongoing festive season and the upcoming wedding season. Despite elevated gold prices, consumer sentiment continues to be encouraging, reaffirming gold’s timeless significance…”

This sentiment translates into steady interest across traditional bridal jewellery, contemporary lightweight pieces, and investment-oriented purchases ahead of the heavy wedding dates.

3. Industry Call for Patience & Wedding Stability

Addressing market anxiety surrounding gold rate fluctuations, Rakhal Gontla (Jt MD, Vaibhav Jewellers) offers a reassuring message to the trade:

“My message to the trade and industry is simple: Don’t panic. These may be challenging times, but it is important to stay resilient, hold your ground and navigate the market with patience and perseverance.”

Marriage-related sales are expected to stay particularly healthy, backed by gold’s central role in traditional ceremonies.

4. Volume Subdued, Value Growth Driven by Gen Z & Alternative Metals

Rising gold rates have led to a division between physical volume and monetary sales value. Jayantilal Challani (Chairman, Challani Group Of Companies) observes:

“The jewellery industry expects a cautious and value-driven festive season, with total sales value projected to grow in single or low-double digits even as physical volume remains subdued due to record-high gold prices.”

To bridge this gap, jewellers are tapping into Gen Z buyers who favor minimalist designs—such as thin chains, stud earrings, and understated rings—and shifting attention toward natural diamonds and alternative metals.

5. Natural Diamonds & Expanding Value Expectations

As gold prices surge, natural diamonds are gaining significant market share, evolving from purely bridal wear to everyday lifestyle pieces. Eshwar Surana (MD, Raj Diamonds) projects strong growth in value:

“We believe the festive season will add sparkle to jewellery sales, and we expect it to grow 20–25% in value. We have already witnessed a strong and encouraging customer response…”

Rising disposable incomes and millennial demand for meaningful investment pieces are helping power this 20%–25% value surge.

6. Transparency & Consumer Confidence

Navigating periods of high pricing requires absolute trust. Dr. C. Vinod Hayagriv (MD, C. Krishniah Chetty Jewellers) cautions against misleading retail tactics while noting a muted initial sentiment:

“The sentiment for the festive season is muted… It is essential that we maintain consumer confidence with genuine sales promotions. Without inflating prices and artificially discounting—which erode consumer confidence.”

Maintaining genuine promotional integrity is seen as vital for matching or modestly exceeding last year’s festive performance.

7. Gold’s Intrinsic Value Amid Volatility

Concluding the trade sentiment, John Alukka (Jt MD, Jos Alukkas) points out that elevated gold rates actually reinforce consumer belief in the metal’s enduring value:“

Consumers are constantly seeking value and they find it in gold. In fact the consumer trust in gold has increased because of the higher value. There could be slight hesitation and confusion because of rate variations…”