Despite PM’s appeal, gold buying unlikely to change
Experts highlight the cultural and emotional bond with the yellow metal as a primary driver of market resilience.
Mumbai: A jewellery shop employee displays gold chains at a store in Kalbadevi after Prime Minister Narendra Modi urged Indians to stop buying gold for a year, in Mumbai, Monday, May 11, 2026. (PTI Photo)(PTI05_11_2026_000265A) The day after Prime Minister Narendra Modi called for Indians to unite during the crisis caused by the prolonged war in West Asia by, among other austerity measures, not buying gold for a year, there was concern but also a quiet confidence in the industry.
“Traditionally, people of India have an unbreakable relationship with gold. Gold is an emotion for the majority of us. This bond is not going to change or break,” said Abhay Gadgil of the Pune Saraf Association (PSA), an apex body of jewellers of the city. He added that different jewellery associations would be discussing the issue and might approach the government at a national level.
Vipul Ashtekar, Partner at KRA Jewellers, said that crores of small artisans depend on the gold industry for their livelihood. “If people stop buying gold for a year, there will be huge losses. I think what Modi ji meant is that people should control on buying biscuits and bullions,” says Ashtekar.
The Prime Minister’s speech was to inform Indians of the need to save foreign exchange. His appeal to people to avoid travelling abroad, unless very important, and working from home, are intended to save dollars and reduce the pressure on petroleum.
India imports most of the gold from Australia and South Africa, among others. The country is the second-largest buyer of gold in the world. In 2025-26, India imported $72 billion worth of gold, which was a 24 per cent increase from the year before. All this gold costs dollars.
Gadgil added that the yellow metal is going to keep drawing people because it also represents a form of security. “People feel safe investing their money in gold. In the last few years, the returns on gold, too, have been promising. The fluctuations in the stock markets, too, convince people that gold is a safe bet,” added Gadgil.
There does not seem to be an alternative to gold for small, medium and big investors, which might be individuals or institutions. The gold industry is not overtly worried after the Prime Minister’s speech because they are confident people will keep coming through the doors to look for a piece that fits their budget.
Gadgil captures the strong hold of gold in the Indian imagination by pointing out that, when the war between the US and Israel with Iran broke out, the price of gold had skyrocketed. “But, in the last one-and-a-half months, the rates have stabilised. We saw that the sales were good during Gudi Padwa and Akshay Tritiya. We are looking at equally good sales for the wedding season, as people are buying gold and will keep doing so,” says Gadgil.
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