Indians lean towards lightweight, lower carat wedding jewellery amid soaring gold prices: Report
Mumbai: Many Indian families are forced to buy lightweight and lower-carat jewellery due to skyrocketing gold prices to keep within their budgets, according to a Reuters report.
Gold price in India has soared 22% in 2024, while it grew 15% in 2023.
As a result of the steep rise in gold prices, people are cutting down on their planned purchases.
Mumbai-based Shubhangi More told Reuters that she scaled down to 50 grams of gold from the initially planned 80 grams for her daughter’s wedding due to the price rise in the last two years.
India is the world’s second-biggest buyer of the precious metal.
Traditionally, Indians prefer heavy gold jewellery crafted in classical designs rooted in the culture of their region.
Bachhraj Bamalwa, partner at jewellery retailer Nemichand Bamalwa & Sons, told Reuters that people want it crafted in lightweight designs to fit their budget.
"Recognising this preference, we are stocking more lightweight jewellery sets while scaling down our inventory of heavier designs," Bamalwa was quoted as saying by Reuters.
Advancements in manufacturing technology are enabling jewellers to create traditional designs in lighter weights, according to Sachin Jain, CEO of the World Gold Council's Indian operations.
To cut costs, many buyers are opting for lower carat jewellery, jewellers noted. Guddi Devi, a teacher from Jamalpur in Bihar, chose 18-carat gold jewellery for her daughter's wedding instead of the more traditional 22-carat.
"I opted for 18-carat jewellery because it was more affordable than 22-carat and is also stronger," she explained, the reporters said.
While 22-carat gold, with 91.7% pure gold, remains the traditional favourite in India, 18-carat gold, which contains 75% pure gold and 25% other metals, is gaining traction, according to the report.
Its price is nearly 20% lower than that of 22-carat gold.
Surendra Mehta, secretary of the India Bullion and Jewellers Association, attributed the popularity of 18-carat jewellery to "lower costs and increased durability”.
"Its share in total sales has grown to over 15% compared to just 5-7% two years ago," he told Reuters.
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