Tradition vs. inflation: Gold rush pressures wedding budgets in India

The Economist describes in a new article that as gold prices skyrocket past $3,200 an ounce, Indian brides and grooms-to-be are finding their dream wedding jewellery caught between tradition and inflation. 

A sign outside Tanishq’s flagship store in downtown Mumbai asks a timely question: “Are rising gold prices delaying your wedding jewellery purchase?” As the cost of gold climbs to historic highs, reaching over $3,200 per troy ounce on April 11, consumers across Asia are weighing their options.

Despite the price hike—up 17.4 per cent since President Donald Trump introduced new tariffs earlier this month—demand in India remains resilient. According to Anindya Banerjee of Kotak Securities, “What matters is stability. If prices remain at this level, demand will return.” Many consumers continue to buy gold jewellery for life events like weddings, supported by offers such as Tanishq’s "festival of exchange," where old gold can be traded for new.

Gold plays a pivotal role in Indian weddings. With around 10 million marriages annually, the sector consumes an estimated 300-400 tonnes of gold, according to Kalyan Jewellers. Buyers also rush to purchase gold on auspicious days like Akshaya Tritiya, which falls on April 30 this year.

Across Asia, gold remains not only a cultural staple but a financial safe haven. India led global jewellery demand last year with 560 tonnes, followed by China at 510 tonnes. In Thailand, digital gold platforms pushed demand up 17 per cent in 2024. From China to Vietnam, gold is used as a hedge against inflation, currency volatility, and limited investment freedom.

Yet, the region’s love affair with gold has broader implications. In India, gold imports made up 8 per cent of total imports last year, fueling a $45 billion trade deficit. Still, as investor Joseph Sebastian notes, “From a macro point of view, gold is bad. But from a micro personal point—I still have 20 per cent of my assets in gold.”

For now, weddings may bend—but won’t break—under gold’s gleam.

By Naila Huseynova