The festive shopping season has flipped a script that held for decades. Gold prices have jumped 54% since the 2025 festive season, while small diamond stones have actually dropped 25% in value. This price inversion is forcing a structural change in what Indians buy. They are swapping heavy 24K gold for lighter, 9K and 14K diamond-studded pieces.
Joyalukkas chairman Joy Alukkas told ET that his chain is seeing a clear uptick in diamond jewellery. "It fits the budget of consumers as lower caratage gold is used," Alukkas said. He projects a 20% growth in this category this year. The competition is fierce, with regional players expanding rapidly and entering equity markets through IPOs.
The shift isn't just about savings; it's about utility. Suvankar Sen, managing director at Senco Gold & Diamonds, noted that everyday wear is driving demand. "Earrings, rings, pendants and bracelets in the price range of Rs 30,000-Rs 1 lakh are showing fast movement," Sen said. Expectations for this segment are up 20% for the festive period.
Mumbai-based Anmol Jewellers founder Ishu Datwani highlighted the changing weight preference. "Earlier, if they bought a necklace weighing 100 grams, they are now settling for 60 grams," Datwani observed. Even at ₹25,000, buyers can now acquire diamond jewellery. The look-to-price ratio, he argues, has tipped in favor of stones over solid gold.
Colin Shah, MD of Kama Jewelry, pointed out a gap in the market. "There is hardly any good gold jewellery in the Rs 10,000-Rs 1 lakh price bracket," Shah stated. Consumers are filling this void with smaller diamond stones. Supriya Kataria, founder of Kumari Fine Jewellery, expects a 15-20% demand increase, noting that buyers want versatility beyond weddings.