Gold Jewellery Prices Rise Significantly; Shoppers Shift to Affordable Diamond Pieces as Jewellers Embrace Lower-Carat Gold Options
Gold prices have surged significantly compared to last year’s festive season, prompting a shift in consumer behavior towards diamond jewellery. Retailers anticipate a 15-20% increase in diamond jewellery sales this festive season as buyers seek alternatives to expensive gold ornaments. The Navratri season has begun strongly for studded jewellery, with shoppers prioritizing value while adhering to their budgets.
Shift in Consumer Preferences
As gold jewellery becomes pricier, consumers are increasingly exploring diamond-studded options priced between Rs 10,000 and Rs 1 lakh. Retailers are adapting by offering 18-carat, 14-carat, and 9-carat gold pieces, making jewellery more accessible without sacrificing design. Smaller diamonds are also gaining popularity, with prices approximately 25% lower than during the 2025 festive season, while gold prices have risen by 54% in the same timeframe.
Joy Alukkas, chairman of Joyalukkas, noted that the use of lower caratage gold has made diamond jewellery more budget-friendly, leading to an expected 20% growth in sales this festive season. The competitive landscape is intensifying, with regional players expanding and entering equity markets through IPOs.
Demand for Everyday Diamond Jewellery
The demand for diamond jewellery intended for everyday use is on the rise. Senco Gold & Diamonds anticipates a 20% increase in sales for items like earrings, rings, pendants, and bracelets priced between Rs 30,000 and Rs 1 lakh. Suvankar Sen, managing director at Senco, highlighted the fast movement of these products.
Consumers are also changing their shopping habits, gravitating towards lighter jewellery as high gold prices make traditional pieces less affordable. Ishu Datwani, founder of Anmol Jewellers, mentioned that even diamond jewellery priced at Rs 25,000 is appealing due to its better look-to-price ratio. Colin Shah, managing director of Kama Jewelry, pointed out that the limited availability of quality gold jewellery in the Rs 10,000 to Rs 1 lakh range is driving consumers towards diamonds.
Modern Designs and Versatility
There is a growing interest in modern diamond jewellery designs that can be worn regularly, rather than just for special occasions. Supriya Kataria, founder of Kumari Fine Jewellery, expects increased interest in diamond jewellery this festive season, driven by consumer demand for distinctive designs and versatility. She anticipates a 15-20% rise in demand for diamond jewellery as consumers seek pieces that can be styled for various occasions.
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