Gold prices have risen sharply from levels seen in last year’s festive season. The sharp hike in gold prices is prompting jewellery buyers to consider diamonds as an alternative, with retailers projecting a 15-20% increase in diamond jewellery sales this festive season.Retailers said the Navratri season has begun on a strong footing for studded jewellery, as shoppers look for pieces that offer value while staying within their budgets. The trend points to a broader change in consumer preferences, with diamond purchases increasingly driven by personal choices and everyday use instead of being limited to weddings and other special occasions.
Gold prices rise, diamonds are back in focus
As gold jewellery becomes more expensive, shoppers are increasingly exploring diamond-studded ornaments priced between Rs 10,000 and Rs 1 lakh.Also Read | Gold at Rs 1.5 lakh per 10 grams is pushing middle-class Indian buyers to silver who are getting 650 grams of silver at the same price; some betting silver at Rs 2.3 lakh per kg may hit Rs 4 lakhJewellers are also turning to 18-carat, 14-carat and 9-carat gold for these pieces to keep them within reach of a wider range of buyers. This allows consumers to opt for lighter jewellery without having to compromise on design.Smaller diamonds have become more affordable, making studded jewellery an appealing option for consumers looking to avoid the higher cost of gold ornaments. Prices of small diamonds are around 25% lower than during the 2025 festive season, while gold prices have climbed 54% over the same period.“Diamond jewellery sales have witnessed an uptick at Joyalukkas because it fits the budget of consumers as lower caratage gold is used,” Joy Alukkas, chairman of pan-India jewellery retail chain Joyalukkas told ET.“We are expecting a growth of 20% in diamond jewellery this festive season. However, competition in the retail jewellery space is hotting up as many regional players are expanding their footprint and entering the equity markets with their IPOs.”Demand for diamond jewellery meant for everyday use is also picking up. Senco Gold & Diamonds expects sales in this category to rise 20% this festive season. “Earrings, rings, pendants and bracelets in the price range of Rs 30,000-Rs 1 lakh are showing fast movement,” said Suvankar Sen, managing director at Senco Gold & Diamonds.Consumers are also changing the way they shop for jewellery, turning to lighter pieces as elevated gold prices push up the cost of traditional ornaments.“Even at Rs 25,000, one can get diamond jewellery,” Ishu Datwani, founder of Mumbai-based Anmol Jewellers, told the financial daily. “Moreover, the look-to-price ratio of diamond jewellery is much higher. Customers are preferring lightweight gold jewellery now. Earlier, if they bought a necklace weighing 100 grams, they are now settling for 60 grams.”The shift is particularly noticeable in the Rs 10,000-Rs 1 lakh segment, where buyers are finding fewer options in gold jewellery. “There is hardly any good gold jewellery in the Rs 10,000-Rs 1 lakh price bracket,” said Colin Shah, managing director of Kama Jewelry. “So, consumers are preferring diamond jewellery. Smaller stones have become popular in this price range.”Also Read | Unscrupulous jewellers may use fake stamps to mark your gold: As hallmarking charges rise to Rs 75 from Rs 45 Gem and Jewellery Domestic Council flags risk of rise in fraudstersDemand is also growing for modern diamond jewellery designs that can be worn regularly, rather than being reserved for weddings or other special occasions.“With gold prices at elevated levels, we expect diamond jewellery to see increased interest this festive season,” said Supriya Kataria, founder of Kumari Fine Jewellery. “Consumers are increasingly looking for pieces that offer distinctive design, versatility and the flexibility to be styled beyond a single occasion.” Kataria expects demand for diamond jewellery to increase by 15-20% this festive season.
