Gold’s Glitter Fades, Diamonds Take the Spotlight This Festive Season
India’s festive sparkle looks a little different this year. With gold prices touching an all-time high of ₹1.27 lakh per 10 grams, buyers are rethinking what “festive jewellery” means. The metal that once symbolized prosperity is suddenly out of reach for many households.
“Gold has gone out of anybody’s pocket,” says Kirit Bhansali, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC). Retailers, he explains, are witnessing a 15–20% drop in customer footfall as cautious consumers hold back on heavy purchases. The festival rush, though still present, carries a more restrained tone this time around.
Yet, it’s not all gloom in the jewellery business. The shift in consumer sentiment is giving rise to a new trend — a sparkling one. Diamonds are quietly becoming the preferred choice for many buyers. As gold and silver continue their record-breaking climb, diamond prices have softened by 5–10% compared to the last quarter, making them the new favorite for value-conscious yet style-driven customers.
“We expect strong momentum in diamond jewellery this season, supported by promotional campaigns and renewed consumer interest,” Bhansali adds, hinting at a subtle but powerful shift in India’s jewellery preferences.
Interestingly, while domestic demand slows, India’s jewellery exports are holding their ground. September saw a 4% rise in exports, fueled by markets like the UAE, Netherlands, and the UK. The only dampener — a sharp 40% decline in exports to the US, reflecting the global unevenness in luxury spending.
On the brighter side, recent GST cuts have given some breathing room to the industry, helping maintain consumer activity despite high prices. And there’s more to look forward to — GJEPC’s much-anticipated Jewellery Park project in Maharashtra is set to kick off soon after Diwali. Developed in partnership with the state government, it aims to position Mumbai as a world-class jewellery hub.
As Bhansali puts it, “The industry is evolving. Gold may be expensive, but India’s love for jewellery will always find new ways to shine.”
“Gold has gone out of anybody’s pocket,” says Kirit Bhansali, Chairman of the Gem & Jewellery Export Promotion Council (GJEPC). Retailers, he explains, are witnessing a 15–20% drop in customer footfall as cautious consumers hold back on heavy purchases. The festival rush, though still present, carries a more restrained tone this time around.
Yet, it’s not all gloom in the jewellery business. The shift in consumer sentiment is giving rise to a new trend — a sparkling one. Diamonds are quietly becoming the preferred choice for many buyers. As gold and silver continue their record-breaking climb, diamond prices have softened by 5–10% compared to the last quarter, making them the new favorite for value-conscious yet style-driven customers.
“We expect strong momentum in diamond jewellery this season, supported by promotional campaigns and renewed consumer interest,” Bhansali adds, hinting at a subtle but powerful shift in India’s jewellery preferences.
Interestingly, while domestic demand slows, India’s jewellery exports are holding their ground. September saw a 4% rise in exports, fueled by markets like the UAE, Netherlands, and the UK. The only dampener — a sharp 40% decline in exports to the US, reflecting the global unevenness in luxury spending.
On the brighter side, recent GST cuts have given some breathing room to the industry, helping maintain consumer activity despite high prices. And there’s more to look forward to — GJEPC’s much-anticipated Jewellery Park project in Maharashtra is set to kick off soon after Diwali. Developed in partnership with the state government, it aims to position Mumbai as a world-class jewellery hub.
As Bhansali puts it, “The industry is evolving. Gold may be expensive, but India’s love for jewellery will always find new ways to shine.”