Rising gold prices are pushing jewellery shoppers towards diamonds, with retailers expecting diamond jewellery sales to grow 15-20% this festive season as lower prices of smaller stones make studded ornaments an attractive alternative to expensive gold jewellery. Small diamond prices are about a quarter less than the 2025 festive season while gold prices have surged 54% in 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,” said Joy Alukkas, chairman of pan-India jewellery retail chain Joyalukkas. “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.”
With gold jewellery turning increasingly pricier, consumers are looking at diamond-studded pieces in the Rs 10,000-Rs 1 lakh price bracket. Jewellers are using 18-carat, 14-carat and 9-carat gold to make diamond jewellery more accessible, allowing shoppers to buy lighter pieces without compromising on design.
Everyday wear diamond jewellery is also gaining traction, with Senco Gold & Diamonds expecting this segment to grow 20%. “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.
The shift is also evident in changing buying preferences, with consumers opting for lightweight jewellery to offset high gold prices. “Even at Rs 25,000, one can get diamond jewellery,” said Ishu Datwani, founder of Mumbai-based Anmol Jewellers. “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.”
“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.” Jewellers are also seeing demand for contemporary designs that can be worn beyond weddings and 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 diamond jewellery demand to grow 15-20% this festive season.
Retailers said Navratri has started on a firm note for studded jewellery, with shoppers seeking value within a fixed budget. The trend reflects a change in how consumers view diamonds, with purchases driven by personal use and everyday wear rather than weddings and special occasions alone.
