Wedding bells ring in gold boom, demand up by 45%

Sun Feb 23 2025

Despite a significant surge in gold prices since December, India witnessed a remarkable 45% increase in gold demand during the recent wedding season. Between Nov and Jan, gold imports reached 46.9 metric tonnes (MT), 45% up from 32.35MT in the same period last year. This demonstrates strong consumer appetite despite prices climbing from approximately Rs 78,000 in Nov to Rs 89,000 per 10 grams in Feb.
Jewellers noted that wedding-related purchases kept demand buoyant.

"Nearly 70% of wedding jewellery sales this season were fresh purchases, while the remaining 30% came from exchanges. Interestingly, 14-16-18 carat gold has also seen a good uptake in demand. This trend is not just limited to lightweight jewellery but even wedding jewellery. Ever since gold prices surpassed the Rs 70,000 level, the demand for 14-16-18 carat wedding jewellery has increased significantly. The younger generation is willing to experiment with designs. Therefore, 14-16-18 carat gold jewellery in rose gold, pale gold, copper and even blue and green tones is in good demand among customers," said Jigar Soni, president of Jewellers' Association of Ahmedabad (JAA).

Over the past couple of weeks, however, the retail demand for gold has been subdued, with investment demand picking up as prices soar. Many buyers view gold as a safe haven in times of uncertainty, and therefore, purchases of gold coins and bars are taking place despite higher rates. However, jewellers report that gold imports have dipped over the past week as prices hit the Rs 89,000 level, and with the wedding season nearing its end, overall demand is also tapering off.

While weddings have significantly contributed to gold sales, investment-oriented buying has also played a role. Investors are increasingly drawn to gold as a hedge against inflation and economic uncertainty. "Gold remains a preferred investment, particularly in volatile times," said a bullion analyst.

Source: https://timesofindia.indiatimes.com/