Why Gold Jewellery Sales Declined Sharply in June, 2025 — And What It Means for Buyers

Gold has long been a symbol of prosperity, tradition, and timeless beauty in India. But June 2025 brought an unexpected twist: gold jewellery sales plunged by a staggering 60% compared to the previous year — the steepest drop since the Covid pandemic. So,

What’s behind this dramatic shift?

How can buyers make smart choices in today’s market?

Let’s break it down...

📈 The Price Surge and Its Impact

Gold prices have been on a rollercoaster ride. In July, retail prices soared to ₹1,00,997 per 10 grams, including GST — a ₹600 jump in just one day. This kind of volatility has made buyers hesitant, especially those looking for traditional 22-karat pieces.

According to Surendra Mehta, National Secretary of the India Bullion & Jewellers Association (IBJA), “We do not see any immediate recovery in demand… Small players are affected. It is a tough time for the gold trade.”

Even with discounts and freebies, many jewellers are seeing reduced footfall and slashed production — some by nearly half. 

💡 Changing Consumer Preferences: The Rise of 14-Karat Gold

In response to soaring prices, a new trend is emerging: 14-karat gold jewellery. Younger buyers are gravitating toward these pieces for their:

• Affordability: Lower gold content means lower prices.
• Durability: Perfect for everyday wear.
• Style flexibility: Lightweight designs that suit modern tastes.

Jewellers across India are embracing this shift, offering elegant, budget-friendly alternatives that don’t compromise on beauty.

🌍 Global Factors Driving Gold Prices

The surge isn’t just local. Internationally, gold prices are climbing toward $3,400 per ounce, driven by renewed trade tensions. US President Donald Trump’s tariff threats against the EU and Mexico have rattled global markets, pushing investors toward safe-haven assets like gold.

This global uncertainty adds pressure to domestic prices, making it even more important for buyers to adapt wisely.