• Gold and social capital: Does it still hold the same prestige?

While gold has long been a symbol of wealth and security, its role as an investment asset has become even more prominent in today’s volatile economic climate. However, beyond its financial value, gold holds deep social and cultural significance, particularly in countries like Sri Lanka, where it is often associated with status, tradition, and family legacy.

Gold prices have surged significantly in recent months, with the price increasing by approximately $ 413.83/t oz or 15.77% (Rs. 134,495/t oz) since the beginning of 2025. In March, gold reached an all-time high reflecting its status as a valuable and sought-after commodity.

With the increasing prices, a key question arises: are people still valuing gold for its craftsmanship and artistry, or is it now merely seen as a means of financial security? 

With the rise of imitation jewellery that mimics the aesthetic of gold without the hefty price tag, has gold lost its status as a statement piece? Is the allure of intricate jewellery designs fading in favour of purely investment-driven purchases? 

In this article, we explore how gold’s role in society is evolving and whether its craftsmanship still holds the same prestige in the modern world.

A cultural necessity

To examine whether the rising gold prices have influenced buying patterns, The Sunday Morning Brunch reached out to gold vendors to understand if there has been a shift in consumer behaviour. 

Arun Kumar, a worker at Gold Centre on Sea Street in Pettah, shared insights into how gold was still deeply ingrained in Sri Lankan culture.

“Gold prices have risen significantly and people might be rethinking buying gold as a statement piece. However, at the same time, the mindset of gold being a valuable item that you must possess still exists,” he said. While there is a noticeable drop in customers immediately after news of price hikes, Kumar noted that Sri Lankans eventually returned to gold. 

“Sri Lankans still consider gold to be the ultimate status of wealth. They still want to buy a gold ring or a necklace. If you are a parent and your daughter is getting married, you have to gift her something. We also get a lot of male customers, since they must buy something of value to show their commitment to their partners. This is typically a great sign of respect and acceptance from parents.”

He added that younger generations may view gold purely as an investment and may even explore alternative ways to invest their money, but older generations remained steadfast in their trust in gold. 

“They still believe in gold. It’s something tangible, something safe, and something that will always hold value,” he said. Despite economic fluctuations, tradition and social expectations ensure that gold continues to hold its place as both an investment and a cultural necessity in Sri Lanka.

Shift in consumer preferences 

Similarly, M. Illango, a gold vendor on Sea Street in Pettah, shared his observations on changing consumer preferences, particularly among younger buyers. 

“I have recently noticed a lot of young women buying plain gold bands – it’s very common now. Many of them also bring their mothers’ or grandmothers’ jewellery to be reshaped into wearable pieces, like plain gold hoops. They don’t want any stones or intricate cuts; they just want a simple, plain gold band,” he said.

When it comes to gold purchases for investment purposes, Illango noted a growing trend of buying gold medallions and solid gold pieces purely for their weight. 

“I have had many customers purchase gold medallions, usually just for the weight, whether it’s one pound or two pounds. They tell me, ‘It’s a gift, they can do what they like with it, but I just want to give them solid gold,’” he explained.

However, despite this shift towards simpler designs and investment-based purchases, he emphasised that there had not been a decline in ready-to-wear gold jewellery sales. 

“Simpler designs are more popular and even craftsmen don’t make designs like they used to because imitation jewellery has improved so much. Gold-plated items are very convincing now, so if someone wants a beautiful piece but doesn’t belong to a certain wealth class, they just wear imitation jewellery,” he said.

Regardless, Illango noted that high-net-worth individuals still appreciated intricate craftsmanship. “There are still very wealthy people who want intricately crafted pieces. For them, it is not just about the gold itself – it is about the artistry. If you can afford a beautifully designed piece of gold jewellery, it is still a major status symbol,” he said.

Evolution of gold usage

Brunch also spoke to some customers about their perspectives on gold purchases and many echoed the sentiments shared by the vendors. A recurring theme was that while gold remained valuable, most people preferred to store it away rather than wear it daily, opting instead for gold-plated jewellery for everyday use.

Sharing her thoughts on this shift in gold usage, Faariah Khan said: “Most of the gold I have is my mother’s and I don’t like wearing too much gold – it just feels too risky. I would feel too much pressure knowing I’m carrying something so valuable,” she said. 

She added that she used a simple gold chain for daily wear, while most of her jewellery was gold-plated. “Almost nothing I wear everyday is solid gold – I just don’t need the stress. But I do have some real gold pieces that I bring out for weddings and special occasions,” she explained.

This highlights how gold continues to be valued for its financial security rather than as a daily accessory. While many still invest in gold, the way they wear and use it has evolved, with safety and practicality now playing a significant role in their purchasing decisions.

Similarly, Shavindi Warnapura shared that gold had lost some of its significance as a visible social symbol. “The only gold items I wear are my wedding ring and my engagement ring. Everything else I wear is always gold-plated or some form of imitation jewellery,” she noted.

She also shared that she no longer wore real gold even for weddings. “I don’t think gold holds the same social value anymore, because you can never tell if something is real gold or not. Either people assume everything is fully gold, or they assume it is imitation – there is no way of knowing for sure, so why waste your money and your time?” she questioned.

While Warnapura acknowledged gold’s investment potential, she pointed out that there were other, more accessible ways to grow wealth. “I understand the need to buy gold as something that appreciates in value, but these days, there are so many other means of investment,” she said.

Her perspective reflects a growing trend where younger generations view gold less as a statement of wealth and more as a financial asset, often stored away rather than displayed.

While gold may no longer hold the same visible social status it once did, leading to a decline in the demand for intricate craftsmanship, it still retains its value as a form of social and financial capital. Many now prioritise gold purely as an investment rather than as an ornamental statement, opting for simpler designs or storing their purchases rather than wearing them. 

Despite this shift, gold remains deeply ingrained in cultural traditions and significant life events, continuing to be a symbol of security, legacy, and commitment. As buying habits evolve, the prestige of craftsmanship may diminish, but the allure of gold as a marker of wealth and stability endures.