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Gold Demand to Ease This Festive Season as Buyers Shift to Diamonds and Lighter Designs
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CNBC TV18•14-10-2026, 16:41
Gold Demand to Ease This Festive Season as Buyers Shift to Diamonds and Lighter Designs
- •Gold jewellery demand in India may weaken this festive season due to high prices, tight liquidity, and below-average rainfall affecting rural purchasing power.
- •Industry experts project a 10 to 15 percent decline in India's gold and silver imports amid challenging near-term agricultural conditions.
- •Natural diamond jewellery demand is expected to grow by at least 15 percent in volume terms, driven by stabilizing prices and a preference for lightweight designs.
- •Jewellers are adapting to budget-conscious consumers by expanding offerings in 18-carat and 9-carat gold, platinum, and silver alongside traditional 22-carat products.
- •Men's jewellery, particularly diamond-studded chains, bracelets, and rings, is projected to experience annual growth of 15 to 20 percent.
Key Questions Answered
Gold jewellery demand may remain subdued due to high prices, tight liquidity, weak agricultural conditions, and below-average rainfall in several states impacting the domestic market.
Retailers are offering more 18-carat and nine-carat gold jewellery alongside traditional 22-carat products, introducing lighter designs, expanding platinum and silver ranges, and incorporating alternative options like natural diamonds and coloured gemstones.
The outlook for natural diamonds is encouraging, with manufacturers expecting volume growth of at least 15% compared to last year as consumers show a strong preference for lightweight items like necklaces and bangles.
