Gold Prices Fuel Shift Towards Lighter, Cheaper Jewellery

Indians spent 34% more on jewellery in the April, June 2026 quarter than they did a year earlier, according to the World Gold Council (WGC). However, the quantity of gold purchased fell by 15%, reaching its second-lowest level since 2000.

The increase in gold prices may seem like an obvious explanation for this trend, but it's not that simple. The same amount of money will buy fewer grams of gold now than it would have last year, due to the 59% rise in domestic prices.

This means that jewellers are selling more gold, even though Indians are buying less. It's a shift in the market rather than a decline in demand for gold itself.