As gold prices hit records, Indians opt for bars and coins instead of jewellery

For nearly two decades, Mumbai homemaker Prachi Kadam marked every festive season with a gold jewellery purchase, blending tradition with personal style.

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2025's record rally in prices, however, led her to choose a 10g gold coin instead of necklaces or bangles.

"I like jewellery because it can be worn during functions, but it's hard to justify paying an additional 15 per cent in making charges," said Ms Kadam, who, like millions of Indians, considers buying gold during festivals to be auspicious.

"So I settled for a 10g coin this time," she added.

Her decision 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 towards small coins and bars.

Strong demand for safe-haven assets, US interest rate cuts and a weaker dollar have driven global gold prices up 67 per cent so far in 2025 and saw them hitting a record high of US$4,549.7 per troy ounce on Dec 26.

Indian domestic gold prices climbed 77 per cent in 2025, outpacing the Nifty 50 index's 9.7 per cent gain, aided by a 5 per cent fall in the rupee against the dollar.