The timing is important. Throughout most of 2026, gold prices have been close to all-time highs, and it is definitely more expensive to buy jewellery these days than it was a few years ago. Meanwhile, fashion trends have shortened, e-commerce has boomed, and social media has made jewellery a more often than not fashion statement rather than a lifetime buy.
This is not just a fad for India’s jewellery industry. It’s a sign of a new business environment.
India remains as one of the biggest gold markets in the world. The total gold demand in India in the first quarter of 2026 was 151 tonnes, with the worth of purchases hitting a record high of ₹2.27 lakh crore, mainly due to rising prices, according to the World Gold Council (WGC). The demand for investment gold increased significantly to 82 tonnes, as compared to jewellery demand of 66 tonnes, reflecting that Indians are increasingly investing in gold, and not just using it for jewellery.
Things were a bit different during the second quarter. India’s total gold demand declined 6% year-on-year to 131 tonnes, primarily due to the record prices that deterred jewellery demand. Despite the price increase, however, India continued to be the world’s biggest gold jewellery market in the quarter with a 27% share of global jewellery demand, indicating strong cultural demand.
This is where the behaviour of Gen Z really becomes interesting.
Many young consumers are not only differentiating fashion from investment but also from the other investments. Rather than spending more than ₹1 lakh on a gold chain or necklace, they are opting for fake jewellery, which is priced in hundreds or low thousands of rupees, and putting their money into other investments. When it comes to wearing everyday, it’s sometimes more about affordability and variety than intrinsic value.
This behavior is being spurred by several factors.
First is affordability. As gold prices stay high, young people who are starting to work are more interested in purchasing costly equipment or renting, travelling, buying gadgets, furthering their education, or investing in equity rather than jewellery.
Second is fashion. Now the jewellery trends move quickly and are driven by the content of creators on Instagram, Pinterest and more. Different styles are worn for different events making imitation jewellery an appropriate option for consumers who want variety and not permanency.
Third is convenience. As India’s digital retail market is rapidly expanding, it has become easy for people to find fake jewellery online or from brands that sell directly to consumers. New collections are released practically every week and businesses can adapt to it much quicker than traditional jewellers, who have higher holding costs and longer design cycles.
This shift in consumer preference is opening up opportunities for businesses throughout the value chain. Fashion jewellery manufacturers, online retailers and digital-first brands are enjoying repeat purchases, reduced average selling prices and quicker inventory turnover. Traditional jewellers are reacting by creating light-weight jewellery, lower carat jewellery and new designs targeting younger buyers.
Interestingly, the change is no bad sign for gold.
The World Gold Council also points out that investment demand is increasingly playing a key role in the gold market in India. Purchases of gold, bars and coins have increased, as well as of ETFs, while consumers keep buying gold as an inflation and economic uncertainty hedge.
Recent industry data also indicates the market is more price-sensitive these days. After the implementation of higher import duties and high price, the demand of gold in India has weakened in the April-June quarter with jewellery demand falling and many buyers delaying purchases awaiting better prices.
In fact, Gen Z isn’t rejecting gold at all. Rather, it is redefining itself.
For many people, real gold is a long-term investment for weddings, festivals or investments, and not a fashion accessory for the day. Imitation jewellery, meanwhile, fulfils the need for everyday fashion, experimentation, and affordability.
PNN Business
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