Rings get lighter, receipts get heavier: what is happening to the gold jewelry market
Global demand for gold jewelry in the third quarter of 2026 fell by 17% year-on-year to 312.9 tonnes. However, in value terms, it rose by 2% to reach $43 billion. Consumers are purchasing less gold, but due to high prices, total spending on jewelry continues to grow.
According to data from the World Gold Council (WGC), jewelry gold consumption has been declining year-on-year for 13 consecutive quarters. The third-quarter figure was the lowest for the period in the organization's records, which date back to 2000.
Between January and September, global demand for jewelry gold totaled 889 tonnes, down 19% from the same period in 2025. However, in value terms, the market grew by 15% to nearly $130 billion.
The main reason for the decline in physical demand remains the high price of gold. The average price of the metal based on the LBMA Gold Price PM benchmark reached $4,262.2 per troy ounce in the third quarter, up 23% year-on-year. As a result, consumers in many countries have turned to lighter jewelry, lower-karat items, and more compact designs.
Demand fell most sharply in China and India, the two largest markets for gold jewelry. In China, consumption plunged by 22% to 65.7 tonnes, while in India it dropped by 20% to 99.9 tonnes.
However, metal prices were not the only factor. In China, sales were also affected by slowing economic growth, real estate market woes, and additional tax burdens on jewelry compared to investment gold. In India, demand was dampened by the deferral of some festive purchases to the fourth quarter and concerns over rural incomes due to insufficient monsoon rainfall.
At the same time, spending trends differed noticeably from physical volumes. In India, jewelry gold demand fell by 18% to 241 tonnes over the nine-month period, but its value rose by 19% to $38 billion. In China, the value of demand in the third quarter dropped by 4% to $9 billion, although for January–September it grew by 6% to nearly $30 billion.
For example, Indian retailers have more aggressively promoted diamond jewelry made with 18-, 14-, and 9-karat gold. Such product lines allow retailers to reduce the use of precious metal while maintaining profit margins.
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Aleksandr Kanunnikov
Ivan Donis
