Record Gold Prices Push Jewelry Volumes to Four-Year Low, Spending Hits $47 Billion

Record-high gold prices have turned the jewelry market inside out: global volumes sank to 300 tonnes in the first quarter, the weakest showing since the second quarter of 2020, even as spending on gold jewelry climbed to a first-quarter record of $47 billion. The World Gold Council said consumers were buying fewer fine-weight pieces, a clear sign that price sensitivity is now shaping what lands in the case and what stays there.

That split between volume and value defined the quarter. Total gold demand, including over-the-counter investment, reached 1,231 tonnes, up 2 percent year on year, while the value of demand surged 74 percent to a record $193 billion. Bar-and-coin buying jumped 42 percent to 474 tonnes, and net central-bank purchases totaled 244 tonnes, up 3 percent, as official buyers kept adding to reserves even with a visible uptick in selling activity.

Jewelry was the weak link. Spending on gold jewelry rose 31 percent year on year, but the gain was driven by price, not weight. The Council’s reading is blunt: record-high gold prices translated into lower fine-weight purchases. In practical terms, that means shoppers are still willing to own gold, but they are trading down in grams, choosing slimmer chains, lighter bangles and more restrained pieces that preserve the look of gold without the heft of old-season buying.

India showed how sharply affordability is now steering demand. Gold jewelry volumes there fell 19 percent year on year to 66 tonnes, the second-lowest first quarter on record since 2000, as domestic gold prices rose 81 percent. That kind of pressure rarely leaves the market unchanged for long. Brands are likely to respond with lower-gram designs, more emphasis on craftsmanship and silhouette, and, where possible, financing or purchase plans that soften the sticker shock without diluting the appeal of the piece itself.

The broader message is that gold is behaving less like a pure adornment category and more like a value trade. The World Gold Council’s 2026 outlook expects geopolitical tensions to keep supporting central-bank buying, ETF inflows and bar-and-coin accumulation, while high prices continue to weigh on jewelry. For buyers, that means the next attractive gold piece may be lighter, more design-led and more carefully chosen than the impulse purchase of years past.