The Indian gem and jewellery sector is bullish despite rising gold prices, thanks to changing consumer trends preferring investments in the yellow metal through bars and coins.
Saiyam P Mehra, immediate past Chairman of Gem and Jewellery Domestic Council, said the sale of gold coins and bars increased by about 20 per cent during Diwali compared to 10 per cent earlier. “People are looking at gold as an investment for their children by purchasing bars and later converting it to jewellery when they grow up. When gold prices rise, sales of coins and bars will increase while jewellery sales reduce slightly,” he said.
He said the rising prices will not affect sales. People have realised the need for jewellery when they plan for weddings. Earlier, spending of jewellery in the wedding budget was 15 per cent which is now around 25 per cent.
Mehra was speaking to businessline on the sidelines of the International Jewellery Fair, organised by All Kerala Gold and Silver Merchants Association.
On the Diwali sales, Mehra said it was good as the sector anticipated around 25 tonnes of sales and around ₹65,000 crore worth revenue achieved during the seven days and the sales are still continuing strongly.
Kerala tops
The gold prices, he said, is expected to move up around ₹1,50,000 within six months on account of various factors including global uncertainties.
Kerala, according to him, is number one for gold jewellery sales in India today. More than 30 per cent of the jewellery in India is being sold in the South, and more than 20 per cent of that is in Kerala, thanks to people’s awareness on the appreciating value of yellow gold.
Though the purchasing power per person has declined on account of the rising gold prices, the number of customers has increased. Previously, when people used to buy 10 grams, they now buy around 6 grams, he added.
“We are seeing a shift towards 18-carat jewellery along with the traditional 22-carat. In the next 3 to 5 years, we also expect 9-carat jewellery to become popular. The government has already approved 9-carat hallmarking”, he said.
On the Kerala International Jewellery Fair, Mehra said the sector expect more than one tonne of gold sales across all stalls.
B Govindan, Chairman of the association, said the rising prices of gold have not affected consumer sentiments as people look at gold as an investment option because of its easy liquidity.
Published on October 31, 2025