Summary of this article
86 per cent Indians view jewellery as key wealth asset
Jewellery preference nearly matches stocks and mutual funds
Lightweight designs boost everyday use and investment appeal
Gold and jewellery have become an important wealth-generating asset for Indian households, standing almost at par with financial assets such as stocks and mutual funds. A recent report by Deloitte reveals that 86 per cent of consumers rank gold and jewellery as important tools in building long-term wealth. This compares very closely to the 87 per cent who prefer equities and mutual funds for the same purpose, showing a clear shift in the perception of how jewellery is seen in household financial planning.
The report suggests that jewellery is no longer looked at as a traditional or ceremonial purchase. It's now being considered a store of value that can support long-term financial goals. Factors such as price stability over time, ease of liquidity and familiarity continue to build the ground for jewellery as a preferred asset class.
Investment and Consumption Intersect
The findings show that jewellery buying behaviour is no longer driven by a single purpose. About 56 per cent of consumers have stated that they buy jewellery for both investment and regular use. Another 28 per cent have said their purchases are driven mostly by investment considerations. This overlap reflects a growing preference for assets which combine both utility and long-term value appreciation.
Age also matters in terms of purchase behaviour. Consumers aged 45 years and above are more likely to purchase jewellery mostly for wealth preservation. Men demonstrate a slightly stronger tendency towards considering jewellery as a financial asset, and younger buyers tend to balance the investment value with design, affordability and use.
Changing Preferences
Customers are now moving towards lightweight and minimalist jewellery. Nearly 49 per cent of respondents said they prefer simple designs that can be worn on a regular basis, rather than heavy and ornate pieces that are reserved for special occasions. This trend is especially prevalent among younger consumers who are more open to trying out modern styles.
Precious metals like silver and platinum are also catching on, because currently they are cheaper than gold and more modern. Jewellers are responding by widening collections which combine an aesthetic value with perceived investment benefits, to suit buyers who want flexibility in the ways they can use them.
Trust is Key for Purchase Decisions
Despite the ever-expanding impact of digital platforms, physical stores still dominate the purchase of jewellery. More than 85 per cent of consumers prefer buying from trusted outlets like national chains, family-run jewellers or neighbourhood stores. Assurance of purity, transparency in prices and personal dealings remain the important aspects in decision making.
Online platforms are increasingly used for the latest designs and comparing prices, but final purchases are mostly done offline. Trust, for example, remains an important component in a category where value and authenticity are closely intertwined.
Industry Structure and Margins
From a business perspective, the report adds that jewellery retailers work on quite thin margins. Operating margins are generally in the range of 5 per cent to 10 per cent, which is less than the global average. High inventory costs and working capital requirements remain problems for the sector.
The report also shows that better operational efficiency and management of inventory can be key to maintaining growth.
