Gold Jewellery Demand Fell in 2025 - Investors Shift to Bars and Coins

The latest annual data from the World Gold Council shows a sharp decline in global gold jewellery demand in 2025, falling between 18% and over 20% across major markets.

The trend is especially visible in traditional gold-consuming nations such as China and India, where record-high gold prices have discouraged discretionary jewellery purchases. Instead, consumers are increasingly turning to investment gold products, including bars and coins.

Gold is no longer viewed primarily as ornamentation. It is increasingly perceived as a strategic financial asset.

Quick Summary

• Gold jewellery demand fell 18–20% in 2025
• China and India saw the sharpest declines
• Consumers are shifting toward gold bars and coins
• Global jewellery market reached $242 billion
• Market projected to grow to $254 billion in 2026, driven mainly by higher prices
• Analysts expect a further 5–7% demand decline next year

Why Is Gold Jewellery Demand Falling?

1) Record Gold Prices

The primary driver behind falling jewellery demand is price. As gold has risen sharply in recent years, affordability has become a key issue for consumers.

High prices impact jewellery differently than investment products:

• Jewellery purchases are often discretionary
• Buyers are more price-sensitive
• Emotional purchases are delayed during price spikes

In markets like China and India, historically the world’s largest jewellery consumers, the response has been clear: buy less jewellery, buy more investment gold.

Gold: Ornament or Investment?

The distinction between jewellery and investment gold is becoming more defined.

“There is a clear distinction between investment gold (bars, coins) and jewellery, which may have artistic or sentimental value but is not an investment,” explains Max Baklayan of Tavex.

“When selling jewellery back, only the scrap price of the gold is paid, which is lower than for investment products.”

Key Differences: Jewellery vs Investment Gold

When jewellery is resold, craftsmanship and branding rarely retain value. The seller typically receives only the melt value, often below the original purchase price.

Investment gold, by contrast, is priced closer to the global spot price and is designed specifically for capital preservation.

Global Jewellery Market Still Growing, But Why?

Despite declining demand in volume terms, the global jewellery market reached $242 billion in 2025 and is forecast to grow to $254 billion in 2026.

This apparent contradiction is explained by:

• Higher gold prices increasing overall market value
• Premiumisation in certain segments
• Growth in branded luxury jewellery

However, analysts forecast another 5–7% decline in physical demand in 2026, suggesting price-driven revenue growth rather than increased consumer appetite.

Jewellery Market Breakdown: What’s Selling?

Segmentation within the global jewellery market shows:

• Rings: Nearly 33% market share (largest category)
• Necklaces: Approximately 22% share
• Bracelets and earrings: Each below 20% share
• Personalised pieces gaining traction
• Engagement rings remain the dominant product within rings

Personalisation continues to attract consumers, particularly in milestone purchases such as engagements and weddings. However, even in these categories, buyers are becoming more price-conscious.

The Bigger Trend: Financialisation of Gold

Gold’s rising price has reshaped consumer psychology.

Instead of viewing gold primarily as:

• A cultural symbol
• A wedding tradition
• A fashion statement

Consumers increasingly see it as:

• A hedge against inflation
• Protection against currency risk
• A portfolio diversification tool

This shift is especially strong among younger, financially literate buyers who compare gold returns to equities, ETFs, and other asset classes.

CGT EXEMPT

Estimated delivery in 6 weeks

1oz British Britannia Gold Coin 2026

We sell 1+ £3,997.24 3814.8 3814,80 3814.8 3814,80 3814.8 3814,80 3814.8 3814,80 3814.8 3814,80 3814.8 3814,80 3997.24 3997,24 3993.37 3993,37 3989.5 3989,50 3985.6 3985,60 3981.76 3981,76 3977.89 3977,89

We sell £3,977.89 3814.8 3814,80 3814.8 3814,80 3814.8 3814,80 3814.8 3814,80 3814.8 3814,80 3814.8 3814,80 3997.24 3997,24 3993.37 3993,37 3989.5 3989,50 3985.6 3985,60 3981.76 3981,76 3977.89 3977,89

We buy £3,814.80

Compare Alert Add to cart

Frequently Asked Questions (FAQ)

Why is gold jewellery demand declining?

Because high gold prices are discouraging discretionary purchases and pushing consumers toward investment-grade gold products.

Is gold jewellery a good investment?

Generally, no. Jewellery carries high design premiums and typically resells at scrap value, not retail price.

Why are gold bars and coins more popular?

They offer better liquidity, lower premiums, and clearer pricing tied to the global gold market.

Will jewellery demand recover?

Analysts expect continued pressure in 2026, with forecasts indicating another 5–7% decline unless prices stabilise.

Conclusion: A Structural Shift in Gold Demand

The 2025 data confirms a structural shift in the global gold market. Jewellery demand is weakening, particularly in traditional strongholds like China and India, while investment gold is gaining traction.

Gold is increasingly viewed not as decoration, but as financial protection.

As long as prices remain elevated and macroeconomic uncertainty persists, the divergence between jewellery and investment demand is likely to continue.