Gold Sales Crash 60% in June 2025: Price Volatility Drives Buyers Away

Gold Sales Crash 60% in June 2025: Price Volatility Drives Buyers Away

1. 📉 June Gold Sales Collapse

Gold sales in India fell a staggering 60% YoY, from over 87 tonnes in June 2024 to just 35 tonnes in June 2025—the steepest drop since the COVID‑19 lockdowns 

2. Sky‑High & Volatile Prices

Retail gold surged past ₹98,000 per 10 g (including GST), jumping ₹600 in a single day. Jewellery-grade rates even hit ₹100,997/10 g 

3. Consumer Sensitivity Prevails

Soaring prices drove consumers away. Despite incentives like freebies and discounts, demand remained depressed as buyers held off .

4. Production Slashed

Manufacturers responded to dwindling demand by halving jewellery production—particularly hitting smaller units hard .

5. International Price Drivers

Global tensions, including trade conflicts, lifted gold prices to nearly $3,400/oz, reinforcing gold's status as a haven amid uncertainty 

6. Shift to 14‑Karat

Jewellers are pushing 14K gold, favored by younger buyers for its affordability and durability—marking a shift from traditional 22K 

7. 9K Hallmarking on the Horizon

IBJA is lobbying BIS and the government to introduce 9K gold hallmarking, making it cheaper and accessible for cost-conscious consumers .

8. Structural Market Shift

This decline highlights deeper consumer behavior shifts: buyers are opting for lower-karat alternatives, and reacting sharply to micro‐seasonal price swings.

9. Jewellery vs Investment Demand

While consumer jewellery demand cratered, export demand for gold jewellery rose ~5.8% in June, indicating differing domestic versus global behavior.

10. Outlook & Opportunities

• Domestic revival hinges on upcoming festivals and weddings.

• If BIS approves 9K hallmarking and 14K continues to gain momentum, affordable gold segments could lead a recovery.

Final Takeaway

June 2025’s 60% gold sales plunge signals a pivotal moment: consumers are demanding resolution of price volatility and access to lower-cost formats. Industry recovery depends on affordability, product innovation, and strategic positioning ahead of festival season.