Gold Prices : Rising gold prices have changed the entire dynamics of India’s Rs.7 lakh crore jewelery market. Generally, rising inflation leads to a decline in sales, but a different trend is emerging in the jewelry market. Consumers are now buying fewer grams of gold than ever before. Despite this, jewelry companies are experiencing record revenue growth.
According to the World Gold Council (WGC), gold demand fell by 17.1 percent in the first half of 2026, but total spending rose 40 percent to Rs. 2.13 lakh crore has been reached. This figure shows that the market is no longer focusing on selling more grams of gold, but on getting more value per gram.
Despite lower sales, companies bumper profits
Titan’s jewelry business saw a 43 percent jump in revenue for the June quarter. Kalyan Jewelers also saw a strong jump of 46 percent in revenue. Akhil Goyal, Director, Carriage Ratings, says that while high gold is putting pressure on volumes, consumers’ passion to spend remains intact. People are now shifting from heavy 22-carat jewelery to fashionable products with less carats.
Old gold a new source of income
Companies are adopting new strategies to avoid expensive imported gold. Kalyan Jewelers is a prime example. Recycled (used) gold contributed more than 46% to the company’s total revenue. The company launched the “Shine with India” campaign in May. Under this initiative, old jewelery is being reused in new designs. This strategy is reducing dependence on imports and strengthening business.
Modern design is tempting the youth
The mindset of the new generation is very different from traditional investing. Youngsters are now opting for light weight jewelery for everyday wear over heavy jewellery. Senko Gold is focusing on collections from 9 carat to 14 carat. Titanium jewelery for men has also been introduced, ranging from Rs 20,000 to Rs 100,000. CBRE’s 2026 report says lab-grown diamonds have become an “accessible luxury” among young people. By setting diamonds in 14 or 18 carat jewelry, customers are getting amazing designs at low cost.
Big brands are replacing goldsmiths’ trust
There was a time when people bought jewelery only from their family jewellers. Now, even this trend is waning. By 2025, the share of large showrooms in retail jewelry leasing will increase to 50 percent. Compulsory hallmarking has reduced the dominance of the unorganized market. Now, people want a better shopping experience with guaranteed accuracy and transparent pricing. Branded showrooms are providing all these facilities under one roof.
