The steep rise in gold prices has impacted consumer behaviour, particularly in the wedding jewellery segment (Photo: Canva)
In 2024, gold prices in India saw a significant rise, with a 21 pc increase year-on-year, making it one of the best-performing assets. This upward trend has continued into 2025, with prices reaching new record highs.
As of now, the price of gold stands at approximately INR 91,515 per 10 grams, almost 2.6 times more than INR 35,220 per 10 grams in 2019.
The steep rise in gold prices has impacted consumer behaviour, particularly in the wedding jewellery segment. Traditionally, weddings in India are synonymous with the purchase of gold, where families spend a substantial amount of money on jewellery for the bride and groom. However, as prices continue to rise, many prospective buyers have been forced to reconsider their purchases.
In 2025, wedding jewellery sales in India have fallen by as much as 70-80 pc, according to Reuters, a news agency. Consumers are increasingly reluctant to make large purchases, and many are opting to sell old jewellery pieces rather than buying new ones.
Jewellery retailers have also been feeling the effects, with a decline in footfall in stores, which has prompted them to offer significant discounts in an attempt to boost sales.
To counter the financial strain, many consumers are also shifting their focus towards lighter, more affordable jewellery options. There has been a notable increase in the popularity of 18-carat gold jewellery, which is seen as a more budget-friendly alternative to the traditional 22-carat gold, without compromising on the elegance or symbolic value.
“Rising gold prices have certainly impacted wedding jewellery demand over the past year, but gold remains an essential part of wedding traditions, and people continue to buy it despite higher costs,” Fayaz Maknoo, Owner, Maknoo Jewellers, at Baramulla in Kashmir, tells Media India Group.
The share of 18-carat gold in total gold sales has grown from 5-7 pc to over 15 pc in the past two years. This shift reflects a changing attitude, as buyers look for ways to maintain the cultural significance of gold while managing their finances more effectively.
“My son is getting married soon, and honestly we are not buying a lot of jewellery, everything has become just too expensive. Whatever we have to buy, we are going for lighter but elaborate designs. That is also the latest trend,” Geeta Nangia, a Delhi resident, tells Media India Group.
Enduring glitter of bridal jewellery
Despite the rising costs, bridal jewellery remains a central part of Indian weddings. It continues to account for around 50-55 pc of total gold jewellery sales by weight. However, even within the bridal segment, changes are taking place. Brides are now opting for lighter, more affordable designs that still maintain the traditional essence of wedding jewellery. This shift has prompted jewellery manufacturers to innovate, offering designs that reduce gold content while preserving the grandeur and cultural significance associated with wedding jewellery.
“These days we are also innovating when it comes to designs. We try to create designs which are lighter in weight but more elaborate, which is also what young brides are looking for,” Aman Sharma, a worker in a jewellery store based in Delhi, tells Media India Group.
The rising price of gold is a challenge for both consumers and jewellery retailers in India. However, with the cultural importance of gold in weddings remaining unchanged. Consumers are becoming more conscious of their spending, and jewellers are responding by introducing lighter designs and lower-carat options to meet the evolving demands of wedding shoppers.