Soaring gold prices have prompted many Indian families to opt for lightweight, low-carat jewelry to meet their budget, industry representatives said.
“I wanted to gift 80 grams of gold to my daughter, but I was forced to narrow down my choice to 50 grams due to the price increase over the last two years,” said Shubhangi More, who lives in Mumbai and who chose a traditional design necklace for her daughter’s wedding.
The price of gold in the second largest buyer of the precious metal has increased by 22% since the start of the year, after an increase of 15% in 2023.
Most Indian shoppers prefer traditional jewelry, but they now want lightweight designs that fit their budget, said Bachhraj Bamalwa, partner at jewelry retailer Nemichand Bamalwa & Sons.
“Recognizing this preference, we are stocking more lightweight sets while reducing our stock of heavier designs,” Mr Bamalwa said.
Advances in manufacturing technology have allowed jewelers to create lighter traditional designs, said Sachin Jain, managing director of the World Gold Council’s India operations.
Buyers are also turning 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 jewelry for her daughter’s wedding.
“I preferred 18-karat jewelry because it was cheaper than 22-karat jewelry and is much stronger,” she said.
Indians traditionally prefer jewelry made from 22-karat gold, which contains 91.7% pure gold, while 18-karat gold contains 75% pure gold and 25% other metals. The price of 18-karat gold is almost a fifth lower than that of 22-karat gold.
“Lower prices and greater durability are making 18-carat jewelry increasingly popular. Its share in total sales has increased to over 15% from 5-7% two years ago,” said Surendra Mehta, Secretary of the India Bullion and Jewelers Association.
