Workers in Green Lab Diamonds in Surat, Gujarat | Photo Credit: Partha Pratim Sharma 10323@Delhi
Current gold prices have risen to ₹109,775 per 10 grams, a 10% increase from ₹100,023 on August 14, according to data from the Indian Bullion and Jewellers Association (IBJA). The demand for pure gold jewellery has been subdued following a record high of ₹110,869 earlier this month, and jewellers are anticipating a 20-30% drop in volume demand this festival season.
Compared to last year, gold prices have surged by 52%, when they were around ₹71,000 per 10 grams.
Affordable Elegance
Namita Kothari, Founder of Akoirah by Augmont, noted that high gold prices are prompting many consumers, especially millennials and Gen Z, to reconsider their purchases for festival jewellery and explore the more cost-effective LGD options. She stated, “We are anticipating a 20-25% surge in festival sales of the LGD category, and we are responding by providing accessible options in 18, 14, and 9 carat gold to ensure that customers receive the design, quality, and finish they desire.”
Kothari emphasized that LGD jewellery is designed to complement traditional purchases rather than replace them. With a focus on certified quality and transparent buy-back or exchange options, manufacturers are working to build consumer trust.
Pooja Madhavan, Founder and Managing Director of Limelight Lab Grown Diamonds, highlighted the advantages of LGDs, stating that their luxurious appeal, beauty, and sustainability at nearly half the cost of mined diamonds are particularly attractive to younger consumers this Diwali. She noted that while gold jewelry maintains its cultural value, many buyers are leaning towards LGDs for ornamentation and personal expression during the festival.
Prapanjj SK Kota, CEO of Reia Diamonds, observed a notable shift among corporate executives towards LGDs for everyday jewellery due to high gold prices. He mentioned, “We offer a lifetime buyback and exchange policy. Additionally, we have waived making and wastage charges for our exclusive carat club members this Deepavali.”
Published on September 20, 2025
