Tremendous rise in the prices of gold and silver
There has been a tremendous rise in the prices of gold and silver in 2025. While the earnings of those investing in bullion (gold and silver) have increased at a record pace, the shares of jewelery companies have fallen badly. Since the beginning of the year, shares in the jewelery sector have fallen by about 36%. So far this year, gold prices have increased by 56% and silver by 69%, but the interesting thing is that instead of buying jewellery, investors are now preferring electronic options like ETF and digital gold.
The condition of jewelery stocks is bad
The data of 14 jewelery companies with market cap of more than Rs 1000 crore shows that the sector is under pressure. Shares of Kalyan Jewelers fell 36%. Senco Gold and Motions Jewelers declined by 35% and 32% respectively. Companies like Renaissance Global, TBZ, Rajesh Exports, PC Jeweller, Asian Star, Radhika Jeweltech declined by 4% to 30%.
However, some stocks like Goldium International, Titan Company and Thangamayil Jewelery saw marginal gains (0.5% to 10%). Newly listed company Bluestone Jewelery and Lifestyle is trading 20% above its listing price, while Shanti Gold International has slipped below its listing price.
Why are jewelery shares falling?
Despite the beginning of the festive season, gold prices have become so high that people are now buying low carat jewellery. The sharp increase in silver has also reduced the interest of customers. Market experts say that high prices of gold and silver will affect both the sales and profits of jewelery companies. Many investors are now investing money in ETFs and digital gold, because there is neither fear of theft nor the hassle of storage.
Tremendous increase in gold ETF
According to AMFI, there has been an increase of 74% in Gold ETF in August 2025. From Rs 1,256 crore in July to Rs 2,190 crore. The number of ETF investors has also increased from 56.6 lakh to 80.3 lakh.
Companies’ results are strong, yet shares fall
Many jewelery companies showed good growth in quarterly results, more than 100% jump in profits of Senco Gold and Sky Gold and Diamonds. Kalyan Jewellers’ profit increased by 48.7%, while sales increased by 31%. Titan Company also increased its profit by 52.5% and recorded sales growth of 21%. Nevertheless, profits of many companies such as Rajesh Exports, Renaissance Global and Thangamayil Jewelers declined.
What next?
Experts believe that if the prices of gold and silver continue to rise like this, then the pressure on the profits of jewelery companies will increase in the coming months. According to the World Gold Council report, demand for gold will increase between October and December, but overall sales may be affected due to high prices. In the opinion of experts, it is better to stay away from jewelery stocks for the time being, while the possibilities of investment in gold and silver are still strong. Big companies like Titan are ahead of other companies because of their diverse business model. The company recently reported that there has been an annual growth of 19% in its jewelery sales and it has opened 34 new stores in the quarter.