Indians now opt for bars and coins over jewellery as gold hit record price

For every festive season, women in India purchased gold jewellery blending tradition with personal style. This year’s record rally in prices, however, have led women to choose a 10-gram gold coin instead of necklaces or bangles.

Normally. women like jewellery because it can be worn during functions, but it’s hard to justify paying an additional 15% in making charges. But now, women, who like millions of Indians consider buying gold during festivals to be auspicious, have settled for gold coins instead.

This reflects a broader shift in India, one of the world’s largest gold markets and where the metal holds deep cultural and financial significance. With prices heading for their biggest annual gain in 46 years, consumers are increasingly turning away from jewellery toward small coins and bars. 

Strong demand for safe-haven assets, U.S. interest rate cuts and a weaker dollar drove global gold prices up 67% so far this year and saw them hitting a record high of $4,549.7 per troy ounce on December 26. Indian domestic gold prices climbed 77% this year, outpacing the Nifty 50 index’s 9.7% gain, aided by a 5% fall in the rupee against the dollar.