Gold Price Surge Drives Shift in Jewelry Preferences

In response to surging gold prices, consumers are increasingly opting for 18-carat jewelry over the traditional 22-carat to manage their budgets, Malabar Gold and Diamonds' Indian operations director O Asher stated during a press interaction in the capital. While the total value of sales has spiked, individual purchase volumes have declined.

Asher elaborated, 'Our goal is to offer lighter jewelry that retains the original design, catering to budget-conscious buyers. This ensures that a customer's aspiration isn't overshadowed by budget constraints.' The firm has observed a notable transition from 22-carat to 18-carat jewelry in specific markets.

Global gold prices have surged by an unprecedented 25% in 2025, with a year-on-year increase of 45%. This escalation, attributed to geopolitical tensions and economic policies, has led to a cautious approach among investors and consumers, coinciding with a peak in both domestic and international gold prices.

Discussing export aspirations, Asher placed confidence in achieving FIEO's USD 1 trillion export target through alignment with national manufacturing and marketing strategies. MP Ahammed, Malabar Group Chairman, noted that gold's value appreciation over decades bolsters consumer confidence, despite price volatility fueled by geopolitical factors, including Trump's trade policies.

Globally, central banks have upped their gold reserves, with the RBI doubling its gold share in forex reserves to 11.7% by March 2025, highlighting gold's stature as a stable reserve asset amidst financial and political turbulence.

(With inputs from agencies.)