In 2025, gold jewellery remains a valuable investment. This is not just for cultural reasons but also as a financial asset. Central banks are buying more gold, adding over 244 metric tons in the first quarter alone. This has pushed gold’s share in global reserves toward 20%. Such demand from institutions strengthens gold’s status as a safe haven, especially with de-dollarization and growing geopolitical risks.
Price Outlook for 2025 and Beyond
Gold has already increased by about 26% this year. The rise is due to a weaker dollar, low interest rates, and economic uncertainty. Analysts are optimistic. RBC predicts a range of $3,100 to $3,500, with a chance to reach $3,722 in late 2025 and possibly $3,813 by the end of 2026. Similarly, Goldman Sachs raised its year-end target to $3,700, suggesting it could reach $4,500 if global risks increase. JP Morgan expects an average of $3,675 in the fourth quarter and a break above $4,000 in the second quarter of 2026. Other forecasts, like HSBC’s, estimate a range of $3,100 to $3,600, with a year-end average of $3,175.
Potential Returns
• If you buy gold jewellery when gold costs ₹1 lakh per 10 g (the recent high in India).
• If prices rise by 10 to 15%, you could gain ₹10,000 to ₹15,000 per 10 g.
• If global prices hit $3,700 to $4,000 per ounce, you might earn 15 to 25%, depending on the rupee-dollar exchange rate and purity.
• However, Citi warns of a potential 25% drop by late 2026 if rate cuts and economic stabilization happen, so timing is important.
Best Timing to Buy
• During festive seasons in India, like Dussehra and Diwali, demand usually rises. However, with high prices this year, buyers are opting for lighter or delicate pieces, or they are choosing alternative options.
• Market trends suggest a "buy on dips" strategy. This means that buyers should accumulate when prices temporarily drop for better average costs.
• If Citi’s prediction comes true, late 2026 could provide better opportunities to buy.
Why Gold Jewellery?
Gold jewellery has two main benefits: it has inherent value and offers cultural enjoyment. Investment-grade jewellery (22K-24K) keeps most of its metal value and can be both beautiful and practical as a financial asset. Despite high prices, wealthy consumers are still drawn to these pieces as a form of tangible wealth.
Summary Table
| Aspect | Insight |
|---|---|
| Forecast Range | Gold may reach $3,500–$4,000+ by late 2025–2026 |
| Potential Gain | 10–25% gain possible, depending on timing and purity |
| Best Buying Time | Buy on short-term dips; consider late 2026 if Citi’s drop scenario occurs |
| Why Jewellery | Dual-purpose asset wearable and retains intrinsic value |