Investment Over Opulence: Plain Gold Jewellery Steals the Spotlight
This wedding season in India is witnessing a significant shift in consumer preferences, with plain and lightweight gold jewellery taking center stage. As gold prices have soared by more than 60% since the beginning of the year, couples and their families are increasingly prioritizing investment and resale value over intricate designs and diamond embellishments.
The Price Rally Driving a Market Shift
Leading jewellers from major brands like Joy Alukkas, PNG Jewellers, Senco Gold, and Kalyan Jewellers report a clear trend towards simpler gold pieces. The dramatic price increase is the primary driver. Gold prices have jumped from Rs 78,000 per 10 grams at the start of 2024 to a recent high of Rs 1,26,666. This surge has made buyers more conscious of the intrinsic value of their purchases.
Surendra Mehta, national secretary of the India Bullion & Jewellers Association, explained the logic behind this trend. "The resale value of gold is more as the price is only moving northwards," he stated. He provided current rates, noting that 18-karat gold is priced at Rs 94,000 per 10 gm, while 14-karat gold is available at Rs 73,000. Even after accounting for the 3% GST and making charges, the resale value remains robust due to the continuous rally in the metal's price, which is unlikely to moderate soon.
Affordability and Asset Creation Take Precedence
This focus on value has also led to increased popularity for lower karat options like 18K and 14K gold, which offer better affordability. The making charges for plain jewellery are also relatively low compared to heavily worked or studded pieces, making the overall purchase more accessible.
Suvankar Sen, managing director of Senco Gold, confirmed that while diamond jewellery is still selling, the focus has decisively shifted to gold. "Couples are seeing it as a tool to create assets for them," he remarked, highlighting the perception of gold as a secure financial investment for the future.
In stark contrast to gold, diamond prices have largely remained unchanged, with a carat costing between Rs 1.75 lakh and Rs 2.25 lakh. Weak demand from key markets like the US and China, coupled with a 50% tariff on US imports imposed by the Trump administration, has limited any significant price growth for diamonds.
Healthy Demand Amidst Millions of Weddings
Despite the high prices, the market sentiment is positive. Ramesh Kalyanaraman, executive director of Kalyan Jewellers, observed, "We are seeing healthy basket sizes this wedding season, supported by positive buying sentiment." He specifically pointed out that in the mass segment, 22-karat lightweight and 18-karat gold jewellery are performing exceptionally well, as they strike the right balance between design, value, and accessibility for price-conscious customers.
This optimism is bolstered by the sheer volume of anticipated weddings. The Confederation of All India Traders expects around 4.8 million weddings to take place this season, creating a massive potential market for gold sales.
Baby George, CEO of Joy Alukkas, noted a distinct difference between the recent festive season and the current wedding season. "During the festive season, from Navratri to Diwali, we saw good traction for diamond jewellery. But for the wedding season, demand is more for gold jewellery," he said, attributing the shift to the continuous price rise and the high resale value of plain gold.
Saurabh Gadgil, managing director of PNG Jewellers, provided a clear picture of the market share, stating, "For us, the ratio of gold to diamond jewellery is 85:15. There has been no change in this ratio compared to last year. Plain gold jewellery continues to rule the wedding category purchases." This solidifies the notion that when it comes to Indian weddings, the timeless appeal and financial security of gold remain unbeatable.
