Gold Hike Continues: Jewellers in Major Markets Re-evaluate Their Strategy

Gold has nearly doubled in value in the last 2 years surging from approximately $2,000 per ounce in December 2023 to about $5,080 per ounce in January 2026; making gold jewellery less affordable and weakening its demand, globally. According to the World Gold Council, the global demand for gold used for making jewellery dropped by 18% in the first nine months of calendar year (CY) 2025. Worst hit were India and China, the world’s biggest markets, where the demand slipped nearly 25% indicating how retail consumption is acutely sensitive to price swings in these regions.

While the retail sector slumped, investor interest in gold bars, coins, and ETFs (exchange traded funds) surged, registering double-digit growth in both regions. As gold prices continue to rise, buyers are shifting their focus from adornment to investment, prompting leading jewellers in major markets to introduce fresher, lightweight designs and recalibrating operations to fuel sales.

Last year, India emerged as the world’s largest gold consumer. For decades, the country has ranked among the top two markets, buoyed by the metal’s cultural significance and investment appeal. However, with gold’s relentless rally showing no sign of easing, buyers are holding back and waiting for prices to stabilise, leading retailers to pivot.

Kalyan Jewellers, the third largest jeweller in India with a revenue of €2.4 billion (₹25,045 crore as of March 2025), is not holding back its expansion plans. In the last nine months, the company has added about 50 new stores and plans to launch another 100+ stores in the next three to six months taking its total store count, globally, to nearly 500. Kalyan Jewellers operates its showrooms in India, the UK, the US and the UAE.