Why demand for gold jewelry is still high in India
What's the story
As the wedding season approaches, gold jewelry is witnessing a surge in demand across India. This trend was especially prominent during October when families invested in gold for festivals like Dussehra and Diwali, as well as auspicious occasions such as Dhanteras. Despite rising prices, consumers remain optimistic about their annual gold purchases. The upcoming wedding season is expected to boost India's gold consumption by 14-18% year-on-year.
Cultural importance
Cultural significance of gold
Gold is more than just a precious metal in India; it symbolizes wealth, prosperity, status, and heritage. Its emotional and cultural value has been passed down through generations. Families are once again prioritizing gold jewelry purchases on 'muhurat' dates after the October festivities, reaffirming its timeless role as both a mark of important milestones and a lucrative financial asset.
Market shift
Budget buying takes lead
The steep rise in gold prices has changed consumer behavior, with budget buying taking the lead. Modern brides are more practical and informed, seeking versatility in their jewelry designs. They prefer lighter earrings, rings, chains, and bangles that look great beyond the wedding day. This shift shows a balance between aesthetic appeal and budget-conscious decisions among buyers.
Ethical considerations
Consumers want ethically sourced gold
Consumers are becoming increasingly aware of the ethical sourcing of gold. They are now asking questions about its origin and manufacturing processes. This trend is pushing retailers to adopt verified systems and follow a stringent Code of Conduct, assuring buyers that their jewelry is responsibly sourced, pure, and hallmarked with all processes certified. Consumers are now looking for retailers who prioritize transparency, trustworthiness, and authenticity in their standards.
Industry impact
IAGES framework for self-regulation
The Indian gold industry's self-regulatory framework, the IAGES, provides retailers with a structured approach to ensure accountability across their value chain. Jewelers accredited under this framework can demonstrate their commitment to these pillars while assuring consumers that they are in safe hands. By choosing jewelers who follow ethical practices, gold buyers not only secure their long-term investment but also contribute to a more transparent and sustainable gold industry.
Consumer strategy
Pre-planning gold purchases
Ahead of the wedding season, families and couples are pre-planning their gold purchases. They are investing in monthly gold-buying schemes offered by most jewelers and banks to save the value of gold for future weddings.