Gold Investment Gains Popularity Over Jewellery Purchases in India

Indian gold buyers are increasingly viewing gold as an investment asset rather than purchasing it solely as jewellery, according to recent industry trends.

Data from 2025 showed a significant shift in consumer preferences. Jewellery demand accounted for less than 60% of India`s total gold consumption, down from its long-term average of around 70%. At the same time, investment demand, including gold bars, coins, and ETFs, rose sharply to 42%.

The trend continues to influence the gold market in 2026 as record gold prices, inflation concerns, and global economic uncertainty encourage investors to seek safer assets.

Unlike jewellery, investment gold typically carries lower premiums, offers better resale value, and closely tracks gold prices. This has led many buyers to choose gold bars, coins, and ETFs over traditional jewellery purchases.

Experts note that while jewellery remains an important part of Indian weddings, festivals, and cultural traditions, a growing number of consumers are now balancing their purchases between adornment and investment.

Key Highlights

- Jewellery demand fell below 60% of India`s gold consumption in 2025
- Investment demand increased to 42%, driven by bars, coins, and ETFs
- High gold prices are encouraging consumers to focus on investment products
- Gold continues to be a preferred safe-haven asset during uncertain economic conditions
- The trend is expected to influence buying patterns throughout 2026

Jewellery vs Investment Gold

Gold Jewellery

- Higher making charges and design costs
- Lower resale value
- Popular for weddings and festivals
- Combines cultural and emotional value

Investment Gold (Bars, Coins, ETFs)

- Higher purity and lower premiums
- Better liquidity and resale value
- Designed for wealth preservation and investment
- Tracks gold prices more closely