India\u2019s gold jewellery demand fell 19% year-on-year to 66.1 tonnes in Q1 2026, as record-high prices weighed on affordability across segments. This marks one of the weakest first-quarter volumes in recent decades.<\/p>\n
Despite the drop in volumes, the value of jewellery demand rose 47% to \u20b999,920 crore, driven by sharply higher gold prices and steady wedding-led purchases. Consumers adjusted buying behaviour, shifting towards lighter, lower-karat and studded jewellery to manage costs.<\/p>\n
In contrast, investment demand strengthened sharply, highlighting a shift in consumption patterns. Total investment demand rose to 82 tonnes in Q1, up over 50% year-on-year, with bar and coin demand at 62.3 tonnes (+34%) and gold ETFs at 19.9 tonnes, a record high. In value terms, bar and coin demand surged 142% to \u20b994,130 crore, while ETF demand jumped 437% to \u20b930,000 crore.<\/p>\n
A significant share of purchases was supported by exchange of old gold, accounting for roughly 40-60% of retail transactions, helping sustain demand despite price pressures. At the premium end, higher-income buyers continued to favour heavier pieces, cushioning the overall decline.<\/p>\n
Sachin Jain, Regional CEO, India, World Gold Council, said, \u201cJewellery demand faced notable headwinds during the quarter, declining 19% year-on-year to 66.1 tonnes, as elevated prices and affordability constraints continued to weigh on consumption, particularly in price-sensitive segments. However, the value of jewellery demand remained resilient\u2026 reflecting a gradual shift towards lighter and more value-conscious purchases.\u201d<\/p>\n
Retail performance remained strong. Leading jewellers reported revenue growth of 32% to 124% year-on-year, driven by higher ticket sizes and increased traction in plain gold jewellery and coin sales. Store expansion also continued, with retailers adding new outlets even amid supply disruptions.<\/p>\n
However, jewellery\u2019s share in total gold demand dropped to 44%, overtaken by investment demand, signalling a clear shift in consumption trends.<\/p>\n","protected":false},"excerpt":{"rendered":"
India\u2019s gold jewellery demand fell 19% year-on-year to 66.1 tonnes in Q1 2026, as record-high prices weighed on affordability across segments. This marks one of the weakest first-quarter volumes in recent decades. Despite the drop in volumes, the value of jewellery demand rose 47% to \u20b999,920 crore, driven by sharply higher gold prices and steady…<\/p>\n","protected":false},"author":1,"featured_media":36211,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[83],"tags":[],"thb-sponsors":[],"class_list":["post-36210","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bulletin"],"acf":[],"yoast_head":"\n