Indians opt for lighter, lower carat jewellery as gold prices soar

Gold prices in world’s second biggest buyer of precious metal surge 22 per cent

Reuters

Mumbai, Updated At : 05:56 PM Dec 18, 2024 IST

A woman picks a gold earring at a jewellery shop in the old quarters of Delhi. Reuters File Photo

Soaring gold prices have led many Indian families to opt for lightweight and lower-carat jewellery to stay within their budgets, industry officials said.

“I wanted to gift my daughter 80 grams of gold, but I was forced to scale it down to 50 grams because of price increase in the past two years,” said Mumbai-based Shubhangi More, choosing a necklace with a traditional design for her daughter’s wedding.

Gold prices in the world’s second biggest buyer of the precious metal have surged 22 per cent so far this year, after rising 15 per cent in 2023.

Most Indian buyers prefer traditional jewellery, but now they want it crafted in lightweight designs to fit their budgets, said Bachhraj Bamalwa, partner at jewellery retailer Nemichand Bamalwa & Sons.

“Recognising this preference, we are stocking more lightweight jewellery sets while scaling down our inventory of heavier designs,” Bamalwa said.

Advances in manufacturing technology have enabled jewellery makers to craft traditional designs in lighter weights, said Sachin Jain, CEO of the World Gold Council’s Indian operations.

Buyers are also switching to lower carat jewellery to reduce costs, jewellers said.

Guddi Devi, a teacher from Jamalpur in the northern state of Bihar, bought 18-carat jewellery for her daughter’s wedding instead of 22-carat.

“I preferred the 18 carats of jewellery because it was cheaper compared to the 22 carats and is much stronger than it,” she said.

Indians traditionally prefer jewellery made in 22-carat gold, which contains 91.7 per cent pure gold, while 18-carat gold contains 75 per cent pure gold and 25 per cent other metals. The price of 18-carat gold is nearly a fifth lower than that of 22-carat gold.

“Lower prices and greater durability are making 18-carat jewellery increasingly popular. Its share in total sales has risen to over 15 per cent, compared to just 5 per cent to 7 per cent two years ago,” said Surendra Mehta, secretary at the India Bullion and Jewellers Association.