Despite PM’s appeal, 2 in every 10 Indians still plan to buy gold; 6 in 10 will avoid buying: LocalCircles survey

Nearly two in every 10 Indian gold buyers still plan to purchase the yellow metal over the next year, despite Prime Minister Narendra Modi’s appeal to citizens to refrain from buying the precious metal, according to a survey by LocalCircles.

The survey found that 19% of gold owners and buyers said wedding or family tradition requirements would remain the primary reason for purchasing gold, while another 19% said they still view gold as the safest investment during uncertain times.

The findings come amid the government’s push to curb gold imports to ease pressure on India’s foreign exchange reserves and the rupee, as geopolitical tensions and elevated crude oil prices widen external vulnerabilities.

“The findings indicate that for the small segment of buyers who will continue with gold purchases, weddings and traditional commitments along with investment safety in uncertain times remain the dominant motivators,” the report said.

Weddings, investment demand keep gold buying alive

The nationwide survey received more than 84,000 responses from gold owners and buyers across 295 districts.

To the question, "The Prime Minister has appealed to citizens to avoid buying gold for one year in national interest. What are you likely to do?" 61% said they will completely avoid buying gold for one year, while 28% said they will reduce gold purchases significantly. And 7% said they will postpone only discretionary gold purchases; 8% said they will continue buying gold for weddings or traditions; another 8% said they will continue buying gold as an investment. And 7% said they will shift from jewellery buying to digital gold, ETF or Sovereign Gold Bonds (SGB), while 13% said the appeal will not impact their gold buying decisions.

While a majority indicated support for the Prime Minister’s appeal, the study underlined that gold continues to hold deep cultural and financial significance for Indian households. To the question "If you are still likely to buy gold despite the Prime Minister’s appeal, what would be the primary reason?", apart from the 19% citing weddings and traditions, 17% respondents said they would buy gold only if “absolutely necessary,” while 6% said fear of further price increases could push them to make purchases. But 36% respondents said they were not likely to buy gold.

Gold imports surge despite government concerns

India’s gold imports have climbed sharply over the past year, rising over 24% to a record $71.98 billion in FY26 from $58 billion a year ago, according to data cited in the report. Gold and silver imports together accounted for 14% of India’s total imports in FY26, compared with 11.8% in the previous fiscal.

Despite continued buying interest among a segment of consumers, the survey showed broad support for temporary restraint. When asked about the impact if a large number of Indians reduced buying gold for one year, 66% said helping conserve foreign exchange reserves would be the biggest impact, 51% said it would reduce pressure on the rupee and imports, while 46% said it would help strengthen the economy during global uncertainty.