India seeks safe harbor in gold & gems amid global uncertainty

As geopolitical stress mounts, Indian households have been turning to a traditional store of value: gold.

India has long been disproportionately influential in the bullion market due to a preference for gold jewelry as a store of household wealth and hedge against economic uncertainties. Jewelry is such an important part of the economy that it has its own sub-component in the CPI.

We’ve also charted the Economic Policy Uncertainty Index* for India, which aims to reflect sentiment by analyzing news coverage. It has shot higher through 2025-26, coinciding with even steeper price rises for jewelry. (Before the war in the Gulf, India was already facing economic stress amid tariff threats from Donald Trump.)