Editor’s Note
As gold prices soar to historic highs, consumer behavior in key markets like India and China is shifting, with investment taking precedence over traditional jewelry purchases. This article explores how local jewelers are adapting their strategies to maintain customer interest amid changing economic dynamics.
Gold’s record rally (reaching $5,080 per ounce on January 26, 2026) is softening jewelry sales in top markets—India and China. As consumers prioritize investment over adornment, how are local jewellers pivoting to keep shoppers engaged?
Weddings remain the mainstay of India’s huge jewelry market.
— Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers
Gold has nearly doubled in value in the last 2 years, surging from approximately $2,000 per ounce in December 2023 to about $5,080 per ounce in January 2026, making gold jewelry less affordable and weakening its demand globally. According to the World Gold Council, the global demand for gold used for making jewelry dropped by 18% in the first nine months of the calendar year 2025. Worst hit were India and China, the world’s biggest markets, where demand slipped nearly 25%, indicating how retail consumption is acutely sensitive to price swings in these regions.
While the retail sector slumped, investor interest in gold bars, coins, and ETFs (exchange-traded funds) surged, registering double-digit growth in both regions. As gold prices continue to rise, buyers are shifting their focus from adornment to investment, prompting leading jewellers in major markets to introduce fresher, lightweight designs and recalibrate operations to fuel sales.
Jewellers in India are combining lower-weight gold with diamonds and gems to attract value-conscious consumers during gold’s highest-ever rally.
Last year, India emerged as the world’s largest gold consumer. For decades, the country has ranked among the top two markets, buoyed by the metal’s cultural significance and investment appeal. However, with gold’s relentless rally showing no sign of easing, buyers are holding back and waiting for prices to stabilise, leading retailers to pivot.
Kalyan Jewellers, the third largest jeweller in India with a revenue of €2.4 billion (₹25,045 crore as of March 2025), is not holding back its expansion plans. In the last nine months, the company has added about 50 new stores and plans to launch another 100+ stores in the next three to six months, taking its total store count, globally, to nearly 500. Kalyan Jewellers operates its showrooms in India, the UK, the US and the UAE.
