As gold prices reach new highs and buyers hesitate, leading jewelers are making efforts to make gold jewelry more affordable by lowering the caratage and introducing lightweight jewelry designs this festival season.
Recently, gold prices surged to a record high of ₹1,14,300 per 10 grams, with global spot gold prices surpassing $3,750 per ounce amid increasing expectations of further interest rate cuts by the US Federal Reserve.
The weakening rupee against the dollar has contributed to the bullish trend in the global market, making gold more expensive in domestic markets.
In the past month, gold prices in India have risen by ₹12,861 per 10 grams, reaching ₹1,13,349 on Thursday, up from ₹1,00,488 on August 25.
Variety of Options
Darshan Chauhan, Director and Chief Growth Officer of Sky Gold & Diamonds, noted that 9-carat jewelry is trending among Gen Z and will help the company expand its customer base while serving as an entry point for first-time gold buyers who require diverse options for their jewelry collections.
Suvankar Sen, MD and CEO of Senco Gold, stated that 9-carat gold is priced approximately 60-65 percent lower than 22-carat gold, while 18-carat gold is about 20 percent cheaper. For example, if 22-carat gold is priced at ₹9,300 per gram, the price for 18-carat would be around ₹7,500-7,600, and 9-carat would be priced at ₹3,750-₹3,850.
Demand for lower carat jewelry is gradually increasing as the sustained surge in gold prices has made traditional gold jewelry unaffordable for the average consumer, Sen explained.
Budgets Not Keeping Pace with Rise
Dr. Saurabh Gadgil, Chairman and Managing Director of PNG Jewellers, commented on the rapid increase in gold prices in recent months, stating that consumers’ budgets have not kept pace, leading many to seek budget-friendly options.
This shift has propelled the lightweight, low-carat jewelry segment, which is expanding at an annual rate of about 30 percent. As consumers adjust to higher prices, the industry anticipates a substantial year-on-year revenue increase of 30-35 percent in this fiscal year.
Despite the soaring prices, gold remains a symbol of happiness and prosperity during the festive season. “Most jewelry buyers do not hesitate to exchange their old happiness for new pieces. Currently, about 50 percent of gold jewelry sold involves the exchange of old gold, and this figure is expected to rise to 70 percent this year due to ongoing increases in gold prices,” Gadgil added.
Published on September 26, 2025
