India’s Gold Price Explosion and the Silent Social Crisis It Has Triggered.

From ₹63,000 to ₹1,73,000: India’s Gold Price Explosion and the Silent Social Crisis

- When Gold Stops Being a Blessing-

In just about three years, gold prices in India have risen from nearly ₹63,000 per 10 grams to an astonishing ₹1,73,000. This dramatic surge is not a routine market fluctuation; it represents a deep structural shift in the global and domestic economy. For a country like India—where gold is deeply embedded in culture, security, and social customs—this rise has triggered serious economic and social consequences.

Gold has traditionally symbolized safety, dignity, and stability for Indian families, especially among the poor and middle class. But today, it is fast becoming a source of anxiety, debt, and social pressure. The issue is no longer about investment returns; it is about social justice, gender equity, and regional vulnerability—particularly in Jammu and Kashmir.

This blog examines why gold prices have risen so sharply, how this affects poor families, how it intensifies the dowry evil, and why Jammu and Kashmir suffers disproportionately from this crisis.

1. A Shocking Rise: The Numbers Behind the Crisis

Between 2023 and early 2026, gold prices in India witnessed an unprecedented rise:

2023: ₹60,000–63,000 per 10 grams  

2024: ₹75,000 per 10 grams  

2025: ₹95,000–1,05,000 per 10 grams  

2026: ₹1,60,000–1,73,000 per 10 grams  

This nearly threefold increase within three years is one of the fastest gold price escalations in India’s history. Such growth far exceeds wage growth, agricultural income growth, or savings interest rates. For ordinary families, this gap has created a severe affordability crisis.

2. Why Are Gold Prices Rising So Fast?

Global Economic Uncertainty  

Gold prices surged worldwide due to wars, geopolitical instability, inflation fears, and recession risks in major economies. Whenever uncertainty rises, global investors rush towards gold as a “safe haven,” pushing prices higher.

Weak Indian Rupee  

India imports almost all of its gold. As the rupee weakens against the US dollar, imported gold becomes automatically costlier. Even without global price hikes, currency depreciation alone raises domestic gold prices significantly.

Cultural and Seasonal Demand  

Unlike many countries, gold demand in India does not fall sharply even when prices rise. Weddings, festivals like Diwali and Akshaya Tritiya, and social customs force families to buy gold regardless of affordability.

Shift from Financial Assets  

Volatility in stock markets, low real returns on savings, and fear of inflation have pushed households to shift savings into gold. This investment demand further fuels the price rise.

3. How the Poor Are Hit the Hardest

Gold as the Poor Man’s Bank  

For decades, gold jewellery functioned as a savings account for the poor. It was easy to pawn during medical emergencies, crop failures, or unemployment. Rising prices have now locked millions out of this traditional safety net.

Debt and Social Pressure  

Unable to afford gold outright, poor families increasingly rely on loans or informal credit to meet social expectations. This leads to debt traps and long-term financial insecurity.

Forced Sale of Ancestral Gold  

Ironically, many families are selling inherited gold to cope with inflation and daily expenses. While prices are high, selling gold today means losing future security forever.

4. Gold Inflation and the Dowry Evil

Dowry Linked Directly to Gold Prices  

In many regions, dowry demands are calculated in tolas or grams of gold. As gold prices rise, dowry demands automatically increase, even though incomes remain stagnant.

Marriage Delays and Gender Burden  

Rising gold costs delay marriages for poor girls. Daughters are increasingly viewed as financial burdens, and families prioritize gold savings over education and empowerment.

Increase in Domestic Violence  

Failure to meet dowry expectations often leads to emotional abuse, harassment, and violence. Economic pressure thus directly strengthens a social evil that India has been fighting for decades.

5. Jammu and Kashmir: A Region Under Extreme Pressure

Gold’s Cultural Importance in Kashmir  

In Kashmir, gold is not just ornamentation; it is seen as financial security for women and a symbol of family honor. Weddings traditionally involve significant gold exchange.

Collapse of Wedding Gold Purchases  

With gold prices crossing affordability limits, wedding-related gold purchases in Kashmir have reportedly fallen by over 80 percent in some seasons. Families are postponing marriages or drastically reducing ceremonies.

Middle-Class Distress  

Kashmir’s middle class has limited investment options, fewer private-sector jobs, and high unemployment. Rising gold prices place unbearable pressure on households already struggling with economic uncertainty.

Impact on Local Artisans  

Traditional goldsmiths and artisans are facing severe losses. Reduced demand has forced many workshops to shut down, threatening centuries-old craftsmanship and livelihoods.

Psychological and Social Stress  

Inability to meet gold traditions creates shame, family conflicts, and anxiety around marriage proposals. In a conflict-affected region, this economic stress adds another invisible layer of trauma.

6. A Deeper Moral Question

The gold price crisis raises a fundamental question: Should social customs remain rigid when economic realities have radically changed?

If incomes grow slowly, gold prices triple, and social expectations remain unchanged, society pushes its poorest members towards lifelong disadvantage. This is not tradition—it is injustice.

7. The Way Forward

Social Reform  

Dowry-free marriages must be actively promoted. Community leaders, religious scholars, and educators must redefine dignity beyond gold weight.

Policy Measures  

The government should encourage gold alternatives like sovereign gold bonds, protect small artisans, and regulate exploitative pricing practices.

Cultural Courage  

The most important change must come from society itself: rejecting the idea that a woman’s value is measured in gold.

Conclusion: Gold Is Shining, Society Is Bleeding

The rise of gold prices from ₹63,000 to ₹1,73,000 is not just an economic event. It reflects deep inequalities, rigid customs, and social vulnerabilities.

For the poor, for women, and especially for regions like Jammu and Kashmir, this surge is not wealth creation—it is exclusion. If society does not adapt, gold will continue to rise, and injustice will rise with it.