Rising gold prices have prompted Indian families to choose lightweight and lower-carat jewelry to stay within their budgets, according to industry experts.
“I planned to gift my daughter 80 grams of gold but had to reduce it to 50 grams due to the price increase over the past two years,” said Shubhangi More from Mumbai, who selected a traditional necklace for her daughter’s wedding.
Gold prices in India, the world’s second-largest consumer of the precious metal, have climbed 22% this year after a 15% increase in 2023.
Indian buyers, who typically favor traditional designs, are now opting for lightweight versions to manage costs, said Bachhraj Bamalwa, a partner at Nemichand Bamalwa & Sons.
“To meet this demand, we are focusing on stocking lighter jewelry sets and cutting back on heavier designs,” he explained.
Technological advances have made it possible to craft traditional designs with less gold, said Sachin Jain, CEO of the World Gold Council’s Indian operations.
Consumers are also choosing lower-carat gold for its affordability, according to jewelers. Guddi Devi, a teacher from Bihar, bought 18-carat jewelry for her daughter’s wedding instead of the more expensive 22-carat option.
“I chose 18-carat jewelry because it’s cheaper and more durable,” she noted.
The price of 18-carat gold is about 20% lower than 22-carat gold. This affordability and durability have boosted its popularity, with its market share increasing to over 15%, compared to just 5-7% two years ago, said Surendra Mehta, secretary of the India Bullion and Jewellers Association.
Rising gold prices have prompted Indian families to choose lightweight and lower-carat jewelry to stay within their budgets, according to industry experts.
“I planned to gift my daughter 80 grams of gold but had to reduce it to 50 grams due to the price increase over the past two years,” said Shubhangi More from Mumbai, who selected a traditional necklace for her daughter’s wedding.
Gold prices in India, the world’s second-largest consumer of the precious metal, have climbed 22% this year after a 15% increase in 2023.
Indian buyers, who typically favor traditional designs, are now opting for lightweight versions to manage costs, said Bachhraj Bamalwa, a partner at Nemichand Bamalwa & Sons.
“To meet this demand, we are focusing on stocking lighter jewelry sets and cutting back on heavier designs,” he explained.
Technological advances have made it possible to craft traditional designs with less gold, said Sachin Jain, CEO of the World Gold Council’s Indian operations.
Consumers are also choosing lower-carat gold for its affordability, according to jewelers. Guddi Devi, a teacher from Bihar, bought 18-carat jewelry for her daughter’s wedding instead of the more expensive 22-carat option.
“I chose 18-carat jewelry because it’s cheaper and more durable,” she noted.
The price of 18-carat gold is about 20% lower than 22-carat gold. This affordability and durability have boosted its popularity, with its market share increasing to over 15%, compared to just 5-7% two years ago, said Surendra Mehta, secretary of the India Bullion and Jewellers Association.
