Surging gold prices are prompting Indian families to adjust their buying habits, with many opting for lightweight and lower-carat jewelry to stay within budget constraints, industry experts report.
Gold prices in India, the world’s second-largest consumer of the precious metal, have risen sharply—22% so far in 2024 after a 15% increase in 2023. This upward trend has significantly impacted traditional jewelry buying patterns, particularly during weddings and festive occasions.
“I wanted to gift my daughter 80 grams of gold for her wedding, but I had to scale it down to 50 grams due to the price increase over the past two years,” said Mumbai resident Shubhangi More, who selected a traditional necklace design for her daughter’s big day.
Demand Shifts Toward Lightweight Designs
Most Indian buyers traditionally favor 22-carat gold jewelry with intricate designs. However, soaring costs have led to a rising demand for lighter pieces. To meet this changing preference, jewelry retailers are adjusting their inventories.
“We’re focusing on stocking more lightweight jewelry sets and reducing our inventory of heavier designs,” said Bachhraj Bamalwa, partner at Nemichand Bamalwa & Sons, a prominent jewelry retailer.
Advances in manufacturing technology have made it possible to craft traditional designs using lighter gold, according to Sachin Jain, CEO of the World Gold Council’s Indian operations.
Growing Popularity of Lower-Carat Jewelry
In addition to lightweight designs, buyers are increasingly choosing lower-carat jewelry as a cost-saving measure. Guddi Devi, a teacher from Bihar, purchased 18-carat gold jewelry for her daughter’s wedding instead of the customary 22-carat.
“Eighteen-carat jewelry is not only more affordable but also stronger, which is why I opted for it,” she explained.
Eighteen-carat gold, composed of 75% pure gold and 25% other metals, costs nearly 20% less than 22-carat gold, which contains 91.7% pure gold. This price advantage, combined with greater durability, is driving its popularity.
“Two years ago, 18-carat gold made up just 5% to 7% of sales, but it now accounts for over 15%,” said Surendra Mehta, secretary of the India Bullion and Jewellers Association.
Adjusting Traditions to Budgets
While gold remains an integral part of Indian culture and celebrations, families are finding innovative ways to adapt to rising costs. By choosing lighter, lower-carat designs, they are managing to uphold tradition without straining their finances.
Jewelry retailers and manufacturers are responding to this trend by embracing technology and diversifying offerings, ensuring that gold jewelry remains accessible to a wider range of customers despite escalating prices.
