'Buying gold right now is risky': Banker drops truth bomb on dying demand and silver’s revenge
“Jewellers are cutting down production to half,” he said. “If you go to sell your gold today, you’ll likely be offered far below market rates due to oversupply.”
- Jul 16, 2025,
- Updated Jul 16, 2025 11:11 AM IST
Gold may glitter, but it’s losing its luster with Indian consumers. Investment banker Sarthak Ahuja warns that soaring prices have crushed jewellery demand and triggered a deeper shift in how the precious metal is traded, sold, and perceived.
“Buying gold right now is a little risky,” Ahuja wrote in a LinkedIn post, noting a more than 60% drop in jewellery sales last month — the steepest decline in five years. With prices hitting ₹1 lakh per 10 grams, jewellers are slashing production and offering discounts on making charges, yet buyers remain scarce.
“Jewellers are cutting down production to half,” he said. “If you go to sell your gold today, you’ll likely be offered far below market rates due to oversupply.”
This glut, Ahuja notes, has led to three major shifts in the Indian jewellery market:
1. Lower-karat gold push: Jewellers are increasingly promoting 14-karat jewellery and have even urged the Bureau of Indian Standards (BIS) to allow hallmarking for 9-karat gold — a move aimed at making gold jewellery more affordable amid the pricing crunch.
2. Silver’s industrial rise: While gold faces oversupply, silver is running short. Ahuja highlights that silver is now in its fifth consecutive year of supply deficit, driven largely by industrial demand, particularly from electric vehicles. This trend, he says, could push silver prices even higher.
3. Artificial jewellery boom: As gold becomes less accessible, demand is rising for direct-to-consumer (D2C) artificial jewellery brands. These offer gold-plated pieces with an emphasis on design over purity. “There’s still a lot to be done in this category,” Ahuja said, suggesting the sector is ripe for innovation despite growing competition.
His assessment points to a shifting landscape where affordability, innovation, and industrial use are beginning to outweigh tradition in India’s precious metal economy.
Gold may glitter, but it’s losing its luster with Indian consumers. Investment banker Sarthak Ahuja warns that soaring prices have crushed jewellery demand and triggered a deeper shift in how the precious metal is traded, sold, and perceived.
“Buying gold right now is a little risky,” Ahuja wrote in a LinkedIn post, noting a more than 60% drop in jewellery sales last month — the steepest decline in five years. With prices hitting ₹1 lakh per 10 grams, jewellers are slashing production and offering discounts on making charges, yet buyers remain scarce.
“Jewellers are cutting down production to half,” he said. “If you go to sell your gold today, you’ll likely be offered far below market rates due to oversupply.”
This glut, Ahuja notes, has led to three major shifts in the Indian jewellery market:
1. Lower-karat gold push: Jewellers are increasingly promoting 14-karat jewellery and have even urged the Bureau of Indian Standards (BIS) to allow hallmarking for 9-karat gold — a move aimed at making gold jewellery more affordable amid the pricing crunch.
2. Silver’s industrial rise: While gold faces oversupply, silver is running short. Ahuja highlights that silver is now in its fifth consecutive year of supply deficit, driven largely by industrial demand, particularly from electric vehicles. This trend, he says, could push silver prices even higher.
3. Artificial jewellery boom: As gold becomes less accessible, demand is rising for direct-to-consumer (D2C) artificial jewellery brands. These offer gold-plated pieces with an emphasis on design over purity. “There’s still a lot to be done in this category,” Ahuja said, suggesting the sector is ripe for innovation despite growing competition.
His assessment points to a shifting landscape where affordability, innovation, and industrial use are beginning to outweigh tradition in India’s precious metal economy.