As gold prices soar Indians buying lighter and lower-carat jewellery

Soaring gold prices have led many Indian families to opt for lightweight and lower-carat jewellery to stay within their budgets. Gold prices in India, the second-biggest buyer of the yellow metal, have surged 22% this year, after rising 15% in 2023.

As of now, Indian buyers prefer traditional jewellery, they want it crafted in lightweight designs to fit their budgets. Recognising this preference, most jewellers are stocking more lightweight jewellery sets, and scaling down their inventory of heavier designs.

Advances in manufacturing technology have enabled jewellery makers to craft traditional designs in lighter weights, said Sachin Jain, CEO of the World Gold Council’s Indian operations.

Indians traditionally prefer jewellery made in 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 nearly a fifth lower than that of 22-carat gold. However, lower prices and greater durability are making 18-carat jewellery increasingly popular. Its share in total sales has risen to over 15%, compared to just 5% to 7% two years ago.