The jewellery industry is experiencing a fundamental transformation as Millennials and Gen Z consumers reshape traditional purchasing patterns and design preferences, according to a comprehensive Deloitte report. This generational shift is moving away from ornate, gold-heavy pieces traditionally stored in family collections toward contemporary, minimalist designs that align with modern lifestyle choices.

Design Preferences Shift Toward Minimalism

The report reveals a clear preference for lightweight, minimalist jewellery among younger consumers. Key findings show:

This shift represents a departure from centuries-old designs toward pieces that complement compact, modern living spaces and contemporary aesthetics.

Investment Versus Accessory Dual Purpose

Modern consumers refuse to choose between investment value and aesthetic appeal. The research indicates that 56% of consumers view jewellery purchases as serving both investment and accessory purposes, while 28% still consider it purely as an investment vehicle. This dual-purpose approach positions jewellery alongside market-linked products such as mutual funds, systematic investment plans, and stocks for wealth creation strategies.

Gen Z consumers are also diversifying their purchasing occasions beyond traditional milestones like marriages. They actively shop for "everyday celebrations" including:

• Professional promotions
• Academic graduations
• Baby showers
• Casual social gatherings like brunches

Silver Emerges as Gen Z's Preferred Metal

The report identifies a significant shift in metal preferences among younger consumers:

Silver's popularity stems from its design versatility, affordability for repeat purchases, and suitability for gifting and self-purchase occasions. The metal has gained favor not only in consumer preferences but has also outperformed gold in commodities markets.

Gold Maintains Overall Market Dominance

Despite changing preferences among younger demographics, gold retains its position as the dominant precious metal across all age groups. The report shows 96% of respondents across all generations still prefer buying gold jewellery compared to other metals.

Facing rising gold prices, consumers have developed adaptive strategies rather than abandoning the yellow metal:

• Reducing jewellery weight while maintaining purity levels
• Increasing allocated budgets for gold purchases
• Exchanging old gold pieces for new designs
• Switching to lower karat gold options

These adaptations demonstrate gold's enduring appeal while acknowledging economic realities and changing lifestyle preferences among contemporary consumers.

Gold and silver prices are poised to sustain their positive momentum in the coming week as market participants navigate heightened geopolitical tensions and await crucial policy decisions from the United States. According to analysts quoted by PTI, the uncertainty surrounding the US Supreme Court's impending verdict on President Trump's tariff policy is expected to provide continued support for precious metals.

Key Market Drivers

Several critical factors are expected to influence precious metals trading in the upcoming week. The primary driver remains the geopolitical uncertainty stemming from various global developments, which traditionally supports safe-haven assets like gold and silver. Additionally, the pending US Supreme Court decision on tariff policies has created an atmosphere of uncertainty that typically benefits precious metals as investors seek portfolio protection.

Economic Data Releases to Watch

Traders will be closely monitoring a series of important economic data releases that could impact precious metals pricing. The week ahead features inflation data from several major economies, including the United States, India, and Germany. These inflation figures are particularly significant as they influence central bank policy decisions and currency valuations, both of which directly affect precious metals demand.

Federal Reserve and Chinese Economic Indicators

Market participants will also pay close attention to commentary from Federal Reserve officials, as their statements often provide insights into future monetary policy directions. Such commentary can significantly influence precious metals prices, particularly given the inverse relationship between interest rates and gold prices. Simultaneously, trade and investment numbers from China will be under scrutiny, as the country remains a major consumer of precious metals and a key driver of global economic sentiment.

Market Outlook

The combination of geopolitical tensions, policy uncertainty, and key economic data releases is expected to maintain the current positive sentiment for precious metals. Analysts suggest that these factors create an environment where gold and silver prices are likely to remain firm, as investors continue to seek safe-haven assets amid ongoing uncertainties in global markets.