Record Gold Prices Reshape Demand as Investors Replace Jewelry Buyers, Metals Focus Warns

Record gold prices are eroding global jewelry demand, according to Metals Focus analysts. The firm forecasts that jewelry consumption will fall more than one-third below 2023 levels by 2026, allowing bars and coins to overtake jewelry as the largest demand segment. Indian jewelry demand dropped 17% year-over-year in the first half of 2026, China plunged 30%, and the rest of the world declined 18%. The analysts stated: “While high prices undoubtedly support the value proposition of precious metal jewellery, and benefit sales revenue, that same price strength is eroding jewellery demand measured in fine weight terms.” Consumers are shifting toward bars and coins while makers use less gold, gemstones and plating. Metals Focus expects gold’s bull market to continue through the second half of the year, supported by central bank purchases and debt concerns. “Precious metal jewellery retains cultural, bridal, gifting and investment appeal,” the firm noted, yet higher prices will further reduce physical volumes.