Jewellery has been a favourite in India, with households collectively holding an estimated 25,000 tonnes of gold, which is more than the combined reserves of the US, China, Russia, and the EU. In 2024, India’s gold demand reached 802.8 tonnes, driven by a 5 per cent annual increase in jewellery consumption. What’s not surprising is that wedding jewellery alone accounts for 60 per cent of the Indian jewellery market, with daily wear making up to another 30 per cent. Fast forward to 2026, and the entire plot has thickened. Now, domestic gold prices surged 76.5 per cent in 2025, and the demand for jewellery dropped 24 per cent to 430.5 metric tonnes, which also happens to be the lowest level in three decades, excluding COVID disruptions.
By early 2026, domestic gold prices had climbed to a record INR1,75,231 per 10 grams. Meaning, the jewellery that was already sitting inside Indian households is now worth more than when it was bought. Nonetheless, India has emerged as the world’s largest gold jewellery consumer, surpassing China and accounting for 30 per cent of global demand in Financial Year 2025 (FY25). All while being backed by a strong cultural demand, including weddings and festivals.
With gold prices up over 50 per cent in the current fiscal year alone, the jewellery sitting safely inside your locker is worth a lot more than it was when you bought it. This is exactly why protecting it is no longer optional. Simply put, getting insurance for your gold jewellery provides coverage against theft, burglary, fire accidents, accidental loss, and even natural calamities like floods and earthquakes. This ensures covering scenarios that most families genuinely do not think about until it's too late. Jewellery often holds sentimental value too, making individuals more inclined to ensure that their precious pieces are protected against unforeseen events. And with domestic gold prices rising to record highs in early 2026, the financial stakes of being uninsured have never been higher.
Standard home insurance policies typically cap payouts on valuables at a fraction of their actual worth. Which means, if your wedding set gets stolen, you could be looking at a serious shortfall. Bank locker insurance also does not provide comprehensive coverage, and moreover, the bank itself is not responsible in case of loss of your jewellery stored there. Although jewellery insurance is sometimes clubbed with a home insurance policy, it is also offered separately by insurance companies with tailored plans that allow you to choose coverage options based on your specific needs. Given how much gold has appreciated lately, relying on a generic home policy to cover heirloom-grade jewellery is, no cap, a financial risk most families cannot afford to take.
India’s relationship with jewellery, in simple words, is generational, emotional, and increasingly valuable in pure financial terms. With domestic gold prices hitting highs in 2026 and investment demand rising sharply, the jewellery passed down through families or bought for a wedding is now a serious asset on anyone’s balance sheet.