The report states that gold jewellery volumes are lower year-on-year (YoY), despite the wedding season, as higher prices and affordability weigh on consumption
Highlighting that price volatility is further constraining discretionary and everyday jewellery purchases, the World Gold Council (WGC) stated that small and standalone jewellers are under pressure in India.
In an India gold market update report, WGC noted that gold jewellery volumes are lower year-on-year (YoY), despite the wedding season, as higher prices and affordability weigh on consumption. While value growth remains positive due to higher prices, volumes, particularly in the mid and small-ticket segments that underpin mass demand, remain pressured. Although demand in the luxury segment remains strong, it is insufficient to offset the broader volume weakness, it said.
“This divergence is also evident across the retail landscape. Large and medium-sized jewellers continue to report relatively healthy sales, supported by higher ticket prices and need-based wedding purchases, whereas small and standalone jewellers are under pressure,” the report pointed out.
Meanwhile, demand for gold investment products, particularly bars and coins, remains strong. The preference towards investment-focused buying is reflected in the volume of gold imports, which rose sharply between July and October, compared with between January and June, underscoring the resilience of investment-led demand.
The report added that gold imports saw a significant decline in November, dropping 73 per cent month-on-month (MoM) and 59 per cent YoY to USD 4 billion, following three consecutive months of growth. This sharp decrease can be attributed to the moderation in post-festive demand. Import volumes for the month are estimated between 32 tonne and 40 tonne.
Total gold imports have reached USD 55 billion year-to-date (YTD), marking a 2 per cent increase over the previous year. However, the volume of imports has fallen by approximately 20 per cent to around 580 tonne, making the value increase purely a factor of higher prices, as highlighted by the report.
