India captures 27% of global gold jewelry demand despite slump
India is still the world's top gold jewelry market, grabbing 27% of global demand in the second quarter of 2026.
But, with gold prices and import duties climbing, jewelry demand dropped 17.1% year over year to 141.2 metric tons in the first half of 2026.
Still, total gold demand actually grew by 2%, hitting 282 metric tons, thanks mostly to more people investing in gold.
Young Indians embrace gold as investment
Gold isn't just for weddings or festivals anymore; young Indians are seeing it as a smart asset.
In early 2026, exchange-traded funds (ETFs) saw solid growth, and bars and coins became way more popular (up over 21% by volume).
Plus, outstanding retail bank loans backed by pledged gold jewelry reached around ₹4.3 lakh crore by February 2026, rising 124% YoY, as people used their old gold for quick cash instead of selling it off.