Gold coins outshine as consumers seek liquid, secure investments amid price surges

Gold coins unlike jewellery, don’t involve making charges and can be easily bought or sold based on market rates.

For Pritika from Bhubhaneshwar, gold represents more than just an investment, it carries deep cultural significance. Unlike jewellery, gold coins come without making charges and offer a quiet promise of financial security.

Despite the rising prices, Pritika is clear that her gold coin purchases aren’t driven by the allure of quick gains. While she doesn’t buy gold as frequently, she has become more mindful with her purchases. For her, buying gold coins is about building financial security and readiness. It is a practice she values irrespective of market fluctuations. Gold coins unlike jewellery, don’t involve making charges and can be easily bought or sold based on market rates.

This shift in consumer behavior is becoming increasingly evident across the market. With jewellery prices crossing the ₹1 lakh mark last week, players are witnessing a notable increase in gold coin purchases. This trend, which picked up momentum last year, has continued strongly into 2024, fueled by soaring gold prices and a growing preference for liquid investment options. Uncertainty in other asset classes has further accelerated this shift.

Shobhana , a Pune resident who used to frequently buy gold jewellery, now prefers to give gold coins as wedding gifts to close family and friends. “Gold coin can be sold, ensuring the sellers get full value back unlike jewellery. People also have their own preferences when it comes to jewellery designs and patterns,” she explained. This shift reflects a broader trend of consumers seeking security and flexibility in their purchases.

Players like Titan have reported significant growth in gold coin sales. “We witnessed a 65 per cent year-on-year (y-o-y) growth in coin purchases in Q4. In Q3 as well, coin sales had grown by around 53 per cent,” said Ajoy Chawla, CEO of Titan’s Jewellery division. In its quarterly update, Titan also noted that while elevated gold prices resulted in sluggish demand at lower price points, it saw high double-digit growth in average ticket sizes at higher price bands. Studded jewellery registered low double-digit value growth y-o-y for the quarter, followed by plain gold jewellery.

Simplicity & liquidity drive demand

Other players, including Senco Gold and Diamonds and Kalyan Jewellers, have reported similar trends. At Kalyan, Executive Director Ramesh Kalyanaraman observed that gold coin purchases often spike during festive occasions like Dhanteras and Akshaya Tritiya. He attributed this behaviour partly to customers who may not have the time to browse intricate jewellery designs, preferring instead the simplicity and liquidity of coins. Interestingly, he noted that in markets outside South India, the demand is largely for 24-carat gold coins.

Joita Sen, Director at Senco Gold and Diamonds, said that coin sales peak during festive periods and around the financial year-end when consumers traditionally look to secure their wealth. She highlighted a growing preference for 1gm, 5gm, and 10gm denominations, while 1gm coins are popular as gifts or for auspicious occasions, 5gm and 10gm coins are preferred for investment. Corporate gifting has also contributed to rising demand in specific weight categories. Sen noted that gold coin sales now constitute a significant portion of Senco’s bullion business, occasionally surpassing regular jewellery sales during high-demand periods like Dhanteras.

Reimagining collections

To cater to changing customer trends, jewellers are also reimagining their collections. Titan, for instance, has introduced nearly 8,000 lightweight designs, adding 1,200 new SKUs last year alone. Suvankar Sen, Managing Director and CEO of Senco Gold and Diamonds, in an earlier conversation with businessline noted that brands are focusing on creating pieces that appear substantial while remaining light in weight, helping customers manage the impact of higher gold prices. This trend is evident even in diamond jewellery: whereas five years ago most pieces were crafted in 18-karat gold, today many are made with 14-karat gold to maintain affordability without compromising on design appeal, Sen explained.

Beyond physical stores, the trend extends to digital platforms as well. Jewellers like Kalyan are observing growing traction for coin sales through online marketplaces and quick-commerce apps, broadening access for a new generation of buyers.

(Report by BL intern Nethra Sailesh)

Published on April 28, 2025