Indians are opting for lighter, lower carat jewelry as gold prices rise

Indians traditionally prefer jewelry made of 22-carat gold, which contains 91.7% pure gold, while 18-carat gold contains 75% pure gold and 25% other metals. File. | Photo credit: Reuters

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

“I wanted to gift my daughter 80 grams of gold, but I was forced to reduce it to 50 grams due to the price hike in the last two years,” said Mumbai-based Shubhangi More, as she selected a necklace with a traditional design for her . daughter’s wedding.

The gold price of the world’s second-largest buyer of the precious metal is up 22% so far this year, following a 15% rise in 2023.

Most Indian buyers prefer traditional jewelery but now they want it to be crafted in lightweight designs that fit within their budget, says Bachhraj Bamalwa, partner at jeweler Nemichand Bamalwa & Sons.

“Recognizing this preference, we are stocking lighter jewelry sets while reducing our inventory of heavier designs,” Bamalwa said.

Advances in manufacturing technology have made it possible for jewelry makers to produce traditional designs in lighter weights, says Sachin Jain, CEO of the World Gold Council’s India operations.

Buyers are also switching to lower carat jewelry to reduce costs, jewelers said.

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

“I preferred 18 carat jewelry because it was cheaper compared to the 22 carat and is much stronger than this,” she said.

Indians traditionally prefer jewelry made of 22-carat gold, which contains 91.7% pure gold, while 18-carat gold contains 75% pure gold and 25% other metals. The price of 18-carat gold is almost a fifth lower than that of 22-carat gold.

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