Indian Gold Demand Surges Amid Global Fashion Trends

The demand for gold in India remains robust, reflecting a deep-rooted cultural significance despite the rising popularity of fast fashion and synthetic jewellery in many parts of the world. According to the World Gold Council, India’s overall gold consumption increased to 802.8 tonnes in 2024, marking a 5% rise from 761 tonnes in the previous year. This increase in demand comes alongside a substantial rise in the total value of gold demand, which reached approximately ₹5,15,390 crore, representing a yearly increase of 31%.

Gold holds a unique place in Indian culture, often viewed as a symbol of wealth, purity, and familial blessing. For Indian brides, the choice of gold over imitation jewellery is not merely a matter of aesthetics; it embodies tradition and heritage. The significance of gold is intertwined with economics, emotion, and ethos, making it an essential aspect of wedding ceremonies. Nearly half of India’s gold consumption is attributed to the wedding industry, reinforcing the metal’s status as a treasured asset rather than just decorative adornment.

While trends may shift towards more modern and affordable options, the allure of genuine gold remains compelling. Even among modern brides, including the Gen Z demographic, there is a persistent preference for gold. Contemporary goldsmiths have adapted to these evolving tastes, offering modern designs in various purities such as 14K, 18K, and 22K gold. This evolution ensures that gold retains its significance while appealing to a younger audience.

Interestingly, while the overall demand for jewellery decreased slightly from 575.8 tonnes in 2023 to 563.4 tonnes in 2024, its value soared by 22%. This trend indicates that consumers are willing to invest in higher-quality pieces despite fluctuations in price. The World Gold Council anticipates that India’s total gold demand will stabilize between 700 and 800 tonnes by 2025, driven largely by high gold prices and anticipated market volatility.

Gold serves a dual purpose as both a cherished cultural artifact and a secure investment. Families and couples are not merely purchasing jewellery; they are acquiring a tangible asset that offers financial security. As global trends gravitate towards fleeting fashion, India’s commitment to gold stands as a testament to its enduring value and heritage. This intrinsic connection between gold and cultural identity underscores why, even in challenging economic climates, demand for this precious metal continues to thrive.

The journey of gold from being a symbol of royalty to a staple in modern-day fashion illustrates its adaptability and significance in Indian society. It continues to shine bright, reaffirming its status as a cherished possession that transcends time and trends.