IN JULY, Prakash Solkar, an IT professional residing in Mira Road, Mumbai, sold his one-bedroom apartment for ₹42 lakh. He initially expected the process of upgrading to a larger two-bedroom home in Navi Mumbai to be simple. The family, comprising his wife Prajuktha and their twin boys, had set their sights on a well-furnished flat near the upcoming international airport. But then came the shocker — the flat came with a price tag of over ₹1.2 crore.

Prakash did the math. A home loan of ₹50 lakh meant at least ₹50,000 in EMI for 15 years. With the children’s college expenses looming and an existing car loan, the couple realised borrowing on Prakash’s single income wasn’t wise. The Solkars then turned to Indian families’ old and trusted reserve: gold.

“I raised the balance money by selling about 50-60 sovereigns of jewellery and gold bars. Its value during our marriage in 2012 was around ₹30,000 per 10 grams for 22K gold. When we sold it in early October, we got over ₹1 lakh, even after depreciation,” says Prakash. After paying for the house, the remaining amount was used to purchase new jewellery for Prajuktha.

Prakash is not alone. As equities stumbled and volatility crept back in 2025, many Indian households are going the Solkar way to monetise their dormant shimmery wealth tucked away in lockers, leveraging record returns, a rarity in other asset classes. As prices scaled historic highs, the yellow metal once again reminded investors why it’s the ultimate shock absorber.

Lasting value

Gold’s investment value stems from fundamental trends, not short-term price fluctuations often highlighted in sales. Global factors, including geopolitical developments, currency fluctuations, and economic policies, influence its price. One could buy 10 grams of 24K gold for ₹18,500 in 2010. A decade later, the price more than doubled to ₹48,651, according to data from brokerage firm Groww. By 2023, the value touched ₹65,330 before breaching ₹80,000 in 2024.

Then came 2025. The prices rose more than 50-60% YoY from late 2024. As of December 5, 2025, the price jumped 7.5% month-on-month, reaching ₹1,28,221, according to MCX. In absolute returns, the prices rose by 70%, 105% and 139%, respectively, over the past three years. Put simply, ₹1 lakh invested three years ago is now worth about ₹2.4 lakh.

Yet, India’s emotional and cultural attachment to gold remains intact. “We see value-driven exchange, especially for wedding shopping. Old gold exchange has become more like currency, and its contribution to sales has risen from 30-35% last year to 40-45% this year,” says Suvankar Sen, MD & CEO of Kolkata-based Senco Gold & Diamonds.

But Ramesh Kalyanaraman, executive director of Kalyan Jewellers, has a counterpoint. “We haven’t observed a meaningful rise in customers selling gold to capitalise on higher prices. Indian households continue to treat gold as a long-term store of value, not a trading asset.” Data from the World Gold Council (WGC) backs him: in Q3 2025, India recycled 21.8 tonnes of gold, down 7% from a year ago.

People are buying within fixed budgets, even at reduced quantities. The result? Even if jewellery sales in terms of volumes may have dipped, the value has sustained. In 2024, gold demand in India was at ₹5,15,390 crore for 802.8 tonnes. While demand by volume rose only 5%, value jumped 31% YoY, driven by multiple record-high prices, import duty cuts, investment demand, and festive purchases.

Cut to 2025. At 118.1 tonnes, the demand volume dropped by 15% in Q1CY25 from 139 tonnes in Q1CY24. However, this decline was offset by a 22% surge (in rupee terms) in the overall value of demand, propelled by soaring global gold prices. Similarly, in the second (April-June) quarter, the overall gold consumption in India dropped 10% YoY to 134.9 tonnes. In Q3CY25, the demand dipped by 16% YoY from 248.3 tonnes to 209.4 tonnes. Yet, at ₹2,03,240 crore, the demand value rose by 23% from ₹1,65,380 crore in Q3CY24.

The third quarter also saw the jewellery demand drop by 31% to 117.7 tonnes as against 171.6 tonnes in Q3CY24. But the value nearly remained flat at ₹1,14,270 crore, compared with ₹1,14,300 crore in Q3CY24. WGC had predicted gold demand in India to fall to 600-700 tonnes in 2025 from the average annual sales of 800-900 tonnes due to record prices impacting jewellery sales. However, the high prices notwithstanding, gold’s intrinsic cultural significance continues to drive purchases, says Sachin Jain, regional CEO, India, WGC. “Consumers are adapting to new price levels,” he notes.

This is manifesting through changing trends in gold consumption. Wedding and festive demand have remained strong, and the current season has opened on a positive note with a rising number of takers for lightweight jewellery. The emotional value of jewellery, which far outweighs short-term price movements, comes into play here. “Gold jewellery is usually bought within a pre-decided budget, and it is the value of gold purchased over volume that really drives our business. When gold prices rise sharply, customers tend to buy slightly less in weight but continue to spend within their set budgets,” observes Kalyan Jewellers’ Kalyanaraman.

Senco’s Sen concurs. “Consumers are spending within fixed budgets, quantity growth is taking a back seat, and lightweight jewellery and lower-carat options are being preferred over heavy, occasion-wear pieces,” he explains. Customers, including brides, prefer versatile and value-centric jewellery that is aligned with rising gold prices, say experts. Families are refreshing traditional pieces with contemporary, colourful or customised designs that reflect evolving tastes rather than liquidation behaviour. Customers want impactful pieces with optimised grammage. Some opt for 18K jewellery in traditional designs, which would have been historically done in 22K gold. “While high prices have made them more value-conscious, they are not less committed. Purchases and overall sentiment continue to be healthy across all formats,” says Kalyanaraman.

Not losing its sheen

“We are observing a strategic shift where investors are eschewing jewellery in favour of lower-margin investment products, although jewellery itself still plays a dual role. Furthermore, there’s been notable growth in Indian gold-backed ETFs (plus-11 tonnes in Q3), highlighting a diversification in how individuals seek exposure to gold’s value, indicating a more diverse gold investment landscape in India,” says WGC’s Jain.

Customers have three investment preferences — bars and coins, digital gold and ETFs, and jewellery, Senco’s Sen explains. Bars and coins remain the top choice because of the ease of liquidity and transparency. Digital gold and ETFs attract younger, urban consumers. “Demand for coins and bars is expected to continue, driven by customers who see them as a convenient way to plan future jewellery purchases rather than as an investment or savings avenue,” says Kalyanaraman.

Taking cues from 2025, the next year will likely continue to surprise, the WGC outlook for 2026 says. A softer growth, accommodative policy, and persistent geopolitical risks are more likely to support gold than to undermine it. India is unlikely to break away from the pack as there is room for demand-driven growth in gold investments. “‘Looking ahead, gold prices will be shaped by a complex interplay of global macroeconomic factors, geopolitical developments, and India’s robust domestic demand [in 2026]. Globally, the trajectory of interest rates from major central banks, alongside persistent geopolitical tensions, will continue to drive gold’s appeal as a safe-haven asset and inflation hedge,’’ says Jain. That said, the same factors may affect the demand volumes in the months to come. Still, Sen bets on gold prices continuing their upward trajectory in 2026. A stable-to-strong outlook is expected as occasional buyers and investors continue to invest in gold as a safe hedge against market volatility. For consumers, 2026 will continue to be a year of balanced buying, a mix of investment-led purchases in coins/bars and jewellery. The wedding market is expected to remain robust, Sen says.

Kalyanaraman echoes similar views. Gold will continue to act as a defensive asset amid macro uncertainty and central bank buying, he says. From a consumer-behaviour lens, the momentum will continue in design-led, value-optimised jewellery, supported by a strong wedding calendar.

From families upgrading homes to brides choosing lightweight elegance and digital investors, gold continues to evolve, yet remains firmly embedded in India’s cultural and financial identity. In a world of uncertainty, gold’s gleam remains a rare constant.