Gold, Silver Soar to Records, Yet Jewellery Sales Plummet in India

• Gold and silver prices hit historic highs in December 2025, with 24-carat gold jumping 84% annually to Rs 1,40,465 per 10 grams on MCX.
• Despite the price rally, gold jewellery sales fell 35-40% year-on-year, and silver jewellery sales dropped 15-20% in December 2025.
• High prices, fear of overpaying, rising living costs, and economic uncertainty led consumers to postpone luxury purchases.
• Investors, however, remained active, with demand for silver bars and coins rising 15-18%, and a shift towards digital gold products.
• Experts predict continued firmness in 2026, with gold potentially reaching $4,750 and silver aiming for $107, driven by geopolitical tensions and US Fed rate cut expectations.

Why It Matters: Record gold/silver prices deter jewellery buyers in India, shifting focus to investments amid economic caution.