Kolkata: Plain and lightweight jewellery in 22-, 18- and even 14-karat gold is in high demand this wedding season, say jewellers, as many young couples and their families prefer them because of the investment and resale value over the elegance and aesthetics of intricately designed and studded pieces.
After a more than 60% increase in the price of gold since January, jewellers from Joy Alukkas and PNG to Senco Gold to Kalyan say stripped-down, lightweight plain gold pieces are in strong demand.
Many are preferring lower karats because of their affordability, while the making charge is lower for plain jewellery. Meanwhile, stagnant diamond prices have weakened the demand for diamond-studded jewellery among value-conscious buyers, as they could reclaim only 80-90% of the value in a buyback.
“The resale value of gold is more as the price is only moving northwards,” said Surendra Mehta, national secretary of the India Bullion & Jewellers Association. “Eighteen-karat gold is priced at ₹94,000 per 10 gm and 14 karat is at ₹73,000. Even after 3% GST and making charge deduction, the resale value remains high just because the price of the metal is on a continuous rally and is unlikely to moderate soon.”
Senco Gold managing director Suvankar Sen said customers are preferring gold even if it is lightweight because of the price appreciation. “Diamond jewellery is selling too, but the focus is more on gold jewellery this wedding season. Couples are seeing it is a tool to create assets for them,” he said.
Gold has appreciated from ₹78,000 per 10 gm on January 1 to ₹1,26,666 on Friday. On the contrary, the price of diamonds has not witnessed appreciation, as demand from the two main consuming countries, the US and China, remained lacklustre.
While the 50% tariff imposed by the Trump administration has affected India’s exports of diamonds to the US, demand from China has remained muted because Chinese consumers have preferred gold over the gemstone as a hedge against inflation.
A carat of diamond is priced between ₹1.75 lakh and ₹2.25 lakh in India, depending on the clarity and cut.
Jewellers said diamond jewellery is being preferred in smaller ceremonies associated with the wedding day.
“We are seeing healthy basket sizes this wedding season, supported by positive buying sentiment. In the mass segment, 22-karat lightweight and 18-karat gold jewellery are performing particularly well, as it offers the right balance of design, value and accessibility for price-conscious customers,” said Ramesh Kalyanaraman, executive director of Kalyan Jewellers.
The Confederation of All India Traders expect as many as 4.8 million weddings this season, which augurs well for the gold trade.
Pocket-heavy customers are splurging on heavy gold jewellery, said Baby George, CEO of Joy Alukkas.
“During the festive season, from Navratri to Diwali, we saw a good traction of diamond jewellery. But for the wedding season demand is more for gold jewellery. The continuous rise in gold prices is prompting couples to choose gold jewellery over studded jewellery as the resale value is high,” he said.
“For us, the ratio of gold to diamond jewellery is 85:15. There has been no change in this ratio compared to last year,” said Saurabh Gadgil, managing director of Pune-based PNG Jewellers. “Plain gold jewellery continues to rule the wedding category purchases.”
