New Delhi, India — February 14, 2026
Record-high gold and silver prices combined with sharp market volatility are severely affecting small and unorganized jewelry retailers across India, with industry estimates showing sales declines ranging from 30% to 45%.
According to projections from the India Bullion and Jewellers Association, local jewelers and traditional goldsmiths nationwide have reported steep drops in sales amid unstable precious metal prices. Industry data indicates that nearly 53% of the jewelry sector is controlled by unorganized players, making them particularly vulnerable to sudden price swings.
High Prices Driving Customers Away
Manish Verma, owner of Shri Shyam Jewellers, said rising gold and silver prices have pushed purchases beyond the reach of many middle-class buyers. He reported that his store alone has recorded nearly a 30% decline in sales, as customers now buy only for urgent occasions such as weddings.
Retailers say daily price fluctuations make business planning difficult. Jeweler Rakesh explained that rapid price increases followed by sudden drops disrupt inventory cycles and make it challenging to introduce new designs or maintain consistent stock.
Silver No Longer a Budget Alternative
In earlier years, customers often turned to silver when gold prices rose sharply. However, significant increases in silver prices over recent years have removed that affordable option. Jewelers say this shift has further reduced demand, as cost-conscious buyers now avoid both metals.
Volatility Is the Biggest Challenge
Rajeev Verma, owner of Lalsons Jewellers in Karol Bagh, said small retailers are facing the greatest pressure, with overall sales falling 30–40%.
He noted that price instability — not just high rates — is the main problem. For example, gold recently climbed close to ₹200,000 per 10 grams before dropping to about ₹150,000, while silver surged near ₹300,000 per kilogram and later fell to around ₹200,000. Such dramatic swings, he said, are difficult for smaller businesses to absorb.
Verma added that stable prices would allow customers to plan purchases, but constant fluctuations discourage buying unless absolutely necessary.
Shift Toward Jewelry Exchange Instead of New Purchases
Retailers report that many customers are now exchanging old ornaments for new designs instead of buying fresh jewelry. This process often results in losses for jewelers because melting, refining, redesigning, cutting, and polishing older pieces increases costs and reduces final gold weight.
Market Outlook
Industry observers say the sector’s recovery depends more on price stability than price reductions. Analysts note that predictable pricing improves consumer confidence, while volatile markets typically delay retail demand and slow overall trade activity.
