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Rising gold costs are steering many Indian shoppers away from heavy yellow-gold pieces and towards diamond-studded jewellery, according to retailers. Gold has climbed about 54% since the last festive season, while small diamonds are roughly a quarter cheaper than a year ago, making studded designs more affordable for everyday wear.
Major chains are expecting brisk demand. Joyalukkas said it expects a 20% rise in diamond sales this festive season. "We are expecting a growth of 20% in diamond jewellery this festive season," said Joy Alukkas. Senco Gold & Diamonds also forecasts about 20% growth in everyday-wear diamond pieces, and Kumari Fine Jewellery expects 15–20% growth. Retailers report strong movement in the Rs 30,000-Rs 1 lakh bracket, while lighter diamond items are available from roughly Rs 10,000.
Jewellers are using lower carat gold and lighter weights to keep prices down, offering pieces in 18-carat, 14-carat and 9-carat gold, and promoting contemporary, versatile designs rather than heavy bridal sets. One retailer noted customers who previously bought 100 gram necklaces are settling for 60 grams. Firms also point to the appeal of small stones and simpler settings for daily wear.
The trend is a demand substitution rather than a structural collapse in gold appetite. If retailers’ projections materialise, the festival season could see a measurable shift within the retail jewellery segment away from high-gram yellow-gold and towards diamond-studded alternatives. That would matter to physical gold flows in India, a major market, but the figures quoted are retailer expectations rather than industry-wide data. Competition among chains, and regional players expanding their footprints, may reinforce the switch in the near term.
Source: M
