Sharp increases in global gold prices are significantly altering jewellery consumption patterns across South Asia, with households increasingly turning to imitation jewellery and lower-purity alternatives, particularly for weddings and cultural ceremonies.
In Indian-administered Kashmir’s Srinagar, 29-year-old accountant Uzma Bashir is closely monitoring gold prices ahead of her upcoming summer wedding. She works at a consultancy firm and earns less than 100 US dollars per month. Despite limited income, she intends to purchase her wedding jewellery independently to avoid financial pressure on her parents.
In the region, gold is not merely ornamental. It is deeply embedded in wedding traditions and is widely regarded as a marker of social standing. In many households, bridal gold also plays a role in addressing financial insecurity within marriage, particularly in contexts where dowry practices remain influential.
Bashir explained that even a single gold ring now costs roughly three months of her salary, highlighting the widening gap between income levels and jewellery prices.
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Global and regional price trends
Gold prices have recorded notable increases, affecting consumer demand across key markets.
| Indicator | Value |
|---|---|
| Peak global price (29 January) | 5,595 US dollars per ounce |
| Current global price | 4,861 US dollars per ounce |
| Gold price (India, 10 grams during Akshaya Tritiya period) | 1,670 US dollars |
| Year-on-year increase in India jewellery price | 63% |
| Decline in India jewellery demand (2025) | 24% |
Data from the World Gold Council indicates that India’s jewellery demand fell by 24 per cent in 2025 compared with the previous year. Retailers report that high prices during major purchasing periods, including Akshaya Tritiya, have reduced consumer buying capacity.
Growth of imitation jewellery
Across South Asia, jewellers report increasing demand for imitation ornaments, gold-plated designs, and lower-carat gold products. A widely noted trend is the expansion of “one-gram gold jewellery”, where a thin layer of 24-carat gold is applied over base metals to replicate the appearance of solid gold at a fraction of the cost.
In Delhi, customers such as Fatima Begum have shifted towards these alternatives for family weddings. She stated that while she received approximately 60 grams of gold at her own wedding in 1996, current financial conditions prevent her from providing comparable amounts for her daughters.
In Bangladesh, similar developments are evident. According to the Bangladesh Jewellers Association, gold prices recently reached 2,200 US dollars per bhori, later reported at around 2,034 US dollars. With the national per capita income estimated at approximately 2,769 US dollars, traditional gold jewellery has become increasingly unaffordable for many households.
In Dhaka’s retail markets, imitation jewellery is available at significantly lower prices, ranging from a few hundred to several thousand taka depending on design and size. Consumers also cite safety concerns, opting for imitation pieces to reduce the risk of theft during public events.
Decline in traditional jewellery demand
In Pakistan, jewellers report that gold jewellery sales have declined by around 50 per cent over the past year. Consumers are increasingly purchasing 12- and 18-carat gold or switching entirely to plated alternatives. The price of one tola of gold is reported at approximately 540,000 rupees (1,938 US dollars), making traditional purchases less accessible.
Shifting perceptions of gold
Market participants in Srinagar observe a gradual change in perception, with gold increasingly viewed as a financial asset rather than everyday adornment. Despite reduced consumption, it remains widely regarded as a stable store of value, reinforcing its role as a long-term investment instrument rather than a routine consumer good.