Indians Shift To Lightweight, Lower-Carat Jewellery Amid Rising Gold Prices

Advancements in manufacturing technology have allowed jewellers to create traditional designs with lighter weights, according to Sachin Jain, CEO of the World Gold Council's Indian operations

Gold prices in India, the world's second-largest consumer of the precious metal, have surged 22 per cent this year, following a 15 per cent increase in 2023

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Rising gold prices have prompted many Indian families to choose lighter, lower-carat jewellery to stay within their budgets, according to industry experts. "I wanted to gift my daughter 80 grams of gold, but I was forced to scale it down to 50 grams because of price increases in the past two years," said Shubhangi More, a Mumbai-based resident, as she opted for a traditional design necklace for her daughter's wedding, according to a Reuters report.

Gold prices in India, the world's second-largest consumer of the precious metal, have surged 22 per cent this year, following a 15 per cent increase in 2023.

While most Indian buyers still prefer traditional jewellery, many are now opting for lighter designs that better suit their financial plans, noted Bachhraj Bamalwa, a partner at the jewellery retailer Nemichand Bamalwa and Sons, states the report.

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

Advancements in manufacturing technology have allowed jewellers to create traditional designs with lighter weights, according to Sachin Jain, CEO of the World Gold Council's Indian operations, reveals the report.

Guddi Devi, a teacher from Jamalpur in Bihar, chose 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 in the report.

In India, 22-carat gold is traditionally preferred for jewellery, as it contains 91.7 per cent pure gold. In contrast, 18-carat gold comprises 75 per cent pure gold and 25 per cent other metals, making it more affordable. The price of 18-carat gold is almost 20 per cent 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 15per cent, compared to just 5per cent to 7per cent two years ago," said Surendra Mehta, secretary at the India Bullion and Jewellers Association.