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Festive Jewellery Demand Revives Despite Elevated Gold Prices
People in India often buy jewellery during festivals and weddings.
This year, some shoppers who waited because gold was expensive are returning to stores.
Gold is cheaper than it was earlier in 2026, but it still costs more than during last year’s festive season.
Because of this, many customers are buying smaller or lighter pieces.
Some are also exchanging old gold to help pay for new jewellery.
Jewellers expect sales to improve as festivals and weddings arrive.
However, the number of pieces sold may be lower than last year.
Big jewellery chains may do better because they can offer larger discounts.
Small jewellery shops say fewer customers are visiting them.
Jewellery buyers are returning during the festive season, encouraged by slightly lower gold prices and auspicious occasions.
Jewellers expect festive demand to improve, although high precious-metal prices may keep volumes below last year’s levels.
Customers are choosing lighter, lower-karat, studded and smaller jewellery pieces, often using old gold to fund purchases.
Higher prices may offset lower quantities, with some jewellers forecasting value growth despite subdued volume growth.
Large organised chains are gaining advantage through stronger finances and discounts, while smaller shops report falling footfall and sales.
- Who
- Indian jewellery buyers, jewellers, large jewellery chains and smaller jewellery shops.
- What
- Festive and wedding-season jewellery demand is showing signs of revival, but high gold and silver prices are constraining purchase volumes.
- Where
- India, including Mumbai’s Zaveri Bazar jewellery market.
- When
- During the current post-monsoon festive season, after a subdued first half of the year; the article compares prices with the 2026 and previous festive seasons.
- Why
- Festivals, weddings and auspicious purchases are supporting demand, while elevated precious-metal prices are making customers more price-conscious.
Revival Optimists
Cautious Outlook
Festive demand
Revival Optimists
Aditya Modak and Prithviraj Kothari report improving sentiment, higher footfall and early signs of a genuine revival during Ganesh Chaturthi and the wider festive season.
Cautious Outlook
Other jewellers expect high prices to keep some buyers away and sales volumes to remain below last year’s levels.
Sales performance
Revival Optimists
Jewellers including Kama Jewelry and PNGS Reva Diamonds expect higher prices to support value growth even if customers buy less jewellery by weight.
Cautious Outlook
Lower quantities, smaller purchases and reduced grammage may limit the industry’s underlying demand and make volume growth moderate or negative.
Retailer prospects
Revival Optimists
Large organised chains are positioned to benefit from customer trust, stronger balance sheets, discounts and faster product innovation.
Cautious Outlook
Small independent jewellers say high prices, limited cash flow, lower footfall and weaker discounting ability are putting their businesses under pressure.
Key facts
- Current gold price
- Gold futures were trading at around Rs 1.5 lakh per 10 grams during the week covered.
- Early 2026 peak
- Gold futures had reached Rs 2.3 lakh per 10 grams in early 2026.
- Last year’s festive price
- Gold traded at approximately Rs 1.2 lakh-1.3 lakh per 10 grams during last year’s festive season.
- Customer preferences
- Buyers are favouring lower-karat gold, studded jewellery, smaller pieces and old-gold exchanges.
- Volume outlook
- Some jewellers expect festive jewellery volumes to decline by about 10-15%, while another industry representative expects 15-20% year-on-year volume growth, still below usual demand before the gold rally.
- Value outlook
- PNGS Reva Diamonds expects high-single-digit to low-double-digit growth in overall value, with more moderate volume growth.
- Market pressure
- Smaller jewellers face reduced footfall and limited ability to match the discounts offered by larger chains.
Quotes
Prithviraj Kothari
President of the India Bullion and Jewellers Association.
“After a subdued first half, we’re seeing early signs of a genuine revival in festive buying. Ganesh Chaturthi set an encouraging tone. Footfall picked up meaningfully compared to the softer trend earlier in the year, with consumers returning for both auspicious purchases and lightweight, everyday-wear pieces.”
indianexpress.com
“We are entering the festive season with a cautiously positive outlook.”
indianexpress.com
Owner of a small jewellery shop in Mumbai’s Zaveri Bazar
Small jewellery retailer describing the financial pressure caused by elevated precious-metal prices.
“Smaller shops like us run on a limited cash flow. We do not have the ability to give such high discounts, we also have to pay our workers and craftsmen. So such a high-price environment is very difficult for us.”
indianexpress.com
Sources
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