Prominent jewellers Varghese Alukkas and Jos Alukkas shared insights with CNBC-TV18, noting that gold prices have been rising for over six months, yet consumer demand has remained surprisingly resilient. Despite elevated price levels, the festive and wedding seasons have continued to support steady footfall and ov erall market sentiment.

According to both executives, the industry is witnessing a significant shift in customer preferences, with lighter, design-oriented jewellery increasingly driving volumes and maintaining value growth across showrooms in key markets.

The jewellers highlighted that while sales volumes in Q2 were down by about 20%, the sales value increased by an equivalent 20%, demonstrating the impact of rising gold prices on total revenue. Consumers appear to be adapting by shifting their purchase patterns toward lighter ornaments and curated designs rather than bulk purchases of traditional heavy pieces.

This behavioral change has softened the volume drop, suggesting that value growth remains intact even as gold trades near multi-month highs. Retailers are managing pricing strategies with a focus on keeping collections affordable yet aspirational, helping sustain the footfall momentum.

Both jewellers pointed out that rising gold prices have led to higher inventory valuations and book profits, improving the balance sheet outlook for organized players. With inventory held at lower average costs, revaluation gains have supported margins even in a softer volume environment.

These trends underline the structural strength of India’s gold retail ecosystem, where pricing cycles often lead to short-term volume adjustments but long-term brand and balance sheet benefits.

Jewellers remain cautiously optimistic heading into the festive season, banking on lightweight jewellery trends and urban consumer resilience to offset pricing headwinds. With global economic uncertainty supporting gold’s safe-haven status, the domestic market may continue to see stable demand across wedding and gifting segments.

Industry participants expect that ongoing innovations in design and customization will further cushion the impact of high prices, ensuring sustained engagement from younger consumers and NRI buyers alike.

Indian-Share-Tips.com Main Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that sustained gold price elevation is reinforcing balance-sheet resilience among major jewellery chains. The near-term shift toward lighter designs and inventory gains could support continued profitability for organized jewellers through FY26, particularly as festive demand cycles remain intact.