Gold Becomes Unaffordable for Common Man; Demand in India Falls by 11%

Jewellery Sales Down 23% Despite Wedding Season; Gold Offers Over 60% Returns in 2025

India’s gold demand dropped by 11 percent in 2025 as prices reached record highs and consumer buying behaviour shifted, according to a report released by the World Gold Council on Thursday. Total gold demand in India fell to 710.9 tonnes in 2025 from 802.8 tonnes in 2024. The council estimates that demand in 2026 may range between 600 and 700 tonnes.

Despite the decline in volume, the value of gold demand increased by 30 percent, reaching ₹7,51,490 crore compared to ₹5,75,930 crore last year, driven by rising prices.

The World Gold Council noted that in the fourth quarter of 2025, high prices and changing consumer preferences significantly impacted gold demand. Quantity-wise, demand fell by 9 percent to 241.3 tonnes, while value-wise, it surged 49 percent to approximately ₹3,03,470 crore.

Jewellery demand declined sharply by 24 percent to 430.5 tonnes in 2025 from 563.4 tonnes in 2024. However, in value terms, jewellery demand rose by 12 percent to ₹4,54,390 crore from ₹4,04,510 crore the previous year. Despite the wedding season, jewellery sales dropped 23 percent due to high prices and inflation. Meanwhile, gold delivered over 60 percent returns in 2025, hitting an all-time high 53 times.

On the other hand, investment demand for gold increased. In the fourth quarter, investment demand rose 26 percent to 96 tonnes, with its value more than doubling to ₹1,20,700 crore.

Global Gold Demand Surpasses 5,000 Tonnes

Worldwide, gold demand crossed 5,000 tonnes in 2025, reaching a new record of 5,002 tonnes, up from 4,961.9 tonnes in 2024. The rise was mainly driven by a strong surge in investment demand, which increased to 2,175.3 tonnes in 2025 from 1,185.4 tonnes in 2024.

Consumer demand globally also rose by 2 percent in the October-December quarter of the current financial year to 1,345.3 tonnes, compared to 1,318.5 tonnes in the same quarter last year.