Global Jewellery Demand Drops 17% in H1FY26: India Remains Top Consumer. Gold Bar and ETF Demand Surges
Global jewellery demand fell 17% in H1FY26 due to record high prices, yet India maintains its status as the world’s top consumer. Discover why investors are pivoting toward a 60% surge in gold bars, coins, and ETFs amid market volatility.
Gold jewellery sales took a real hit in the first half of 2025-26. Compared to the same period last year, demand dropped by 17%. A new report from ICRA and ASSOCHAM points to steep price hikes and shaky economic conditions as the main reasons. People just aren’t willing to spend on things they don’t absolutely need. This comes right after another drop—last year, gold jewellery sales fell by 15%.
Even though buyers are turning away from traditional gold jewellery, interest in investment-grade gold has exploded. Purchases of gold bars, coins, and ETFs jumped by 60% in the first half of this year. That’s on top of a huge 74% spike in investment demand last year. With geopolitical tensions dragging on and worries about inflation piling up, gold isn’t just jewelry anymore. Investors now see it as a shield for their money.
The report also sets the record straight on where India stands. In 2025, India emerged as the world’s largest gold jewellery consumer in FY2025, surpassing China. But local shoppers weren’t immune to high prices, either. Jewellery demand in India fell by about 26% compared with last year’s numbers in the same period—a lot sharper than the global average. Still, thanks to India’s strong cultural ties to gold and the rapid growth of organized jewellery retail, India keeps its top spot.
