Gold and Jewellery: The New Wealth Creation Frontier in India

A Deloitte India report indicates that 86% of Indian consumers consider gold and jewellery as ideal for wealth creation. The market sees a shift from traditional roles to wealth creation and self-expression, with investment interest strong among those aged 45 and above.

A new report by Deloitte India has revealed a significant shift in consumer preferences, with 86% of Indian consumers now viewing gold and jewellery as instrumental for wealth generation. The report highlights the expanding role of jewellery in consumer portfolios, moving beyond the traditional preservation of wealth.

This shift underscores gold and jewellery's enduring value, nearly rivalling more modern investment channels like mutual funds and stocks, which stand at 87% preference. Notably, buyers aged 45 and older exhibit a pronounced inclination towards investment-driven purchases.

Praveen Govindu, Partner at Deloitte India, stated that the jewellery market in India is approaching a crucial transition. Consumption patterns are no longer purely dictated by tradition or cost but are also influenced by wealth creation, personal expression, and everyday practicalities. Despite strong consumer interest, Indian jewellery retailers face challenges in achieving competitive EBITDA margins, currently operating at 5–10%, compared to around 12% for global counterparts.

(With inputs from agencies.)