With gold prices up 54% since last year's festive season, Indian jewellery buyers are turning to diamond-studded pieces priced between ₹10,000 and ₹1 lakh. Retailers expect diamond jewellery sales to rise 15-20% this festive season.
At a glance
- Prices of small diamonds are about 25% lower than in the 2025 festive season.
- Jewellers are using 18-, 14- and 9-carat gold to keep pieces affordable.
- Joyalukkas says diamond jewellery sales have picked up because they fit buyers' budgets.
Background
India is one of the world's largest gold markets, and the Navratri-to-Diwali festive season is its busiest buying period. Lower-carat gold contains less pure gold, so the same design costs less, which matters when prices are high.
What happened
Gold prices have climbed 54% since last year's festive season, prompting Indian jewellery buyers to look at diamonds instead, The Times of India reported. Retailers are projecting a 15-20% rise in diamond jewellery sales this festive season.
Shoppers are increasingly choosing diamond-studded ornaments priced between ₹10,000 and ₹1 lakh. Prices of small diamonds are about 25% lower than during the 2025 festive season.
How jewellers are adapting
Jewellers are making these pieces in 18-, 14- and 9-carat gold, which keeps them within reach of more buyers and allows lighter designs. Retailers said Navratri has started strongly for studded jewellery.
Joy Alukkas, chairman of the Joyalukkas jewellery chain, told The Economic Times that diamond jewellery sales "have witnessed an uptick". He said it "fits the budget of consumers as lower caratage gold is used".
What it means
High gold prices are changing what Indians buy rather than stopping them from buying. Diamond purchases are increasingly driven by personal choice and everyday wear, not just weddings, retailers said.
Our read
Outlook: bearish. A shift from gold to diamond and lower-carat jewellery means less gold used per rupee spent, softening Indian gold demand.
What to watch
- Dhanteras and Diwali jewellery sales.
- Gold prices in the run-up to the festive peak.
- Demand for lower-carat gold jewellery.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-10-24.
Detailed analysis
Timeline
- 2025: Last festive season, with gold about 54% cheaper than now.
- 2026-10: Navratri sales start strongly for diamond-studded jewellery.
Demand Drivers
High gold prices are pushing Indian buyers towards diamond-studded and lower-carat jewellery.
What could lift prices
- Buyers are still spending on jewellery during the festive season.
What could weigh on prices
- Lower-carat and studded jewellery uses less gold.
- Some demand is shifting away from gold altogether.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | Medium | Its festive jewellery buyers are shifting towards diamonds. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Jewellery | Positive | Retailers expect diamond jewellery sales to rise 15-20%. |
Who gains, who loses
- Diamond jewellery retailers: They expect sales growth this festive season.
- Gold demand in India: Less gold goes into each piece of jewellery sold.
Other ways this could play out
- If gold prices fall before Diwali, some buyers may return to gold jewellery.
- If prices stay high, the shift to diamonds and lower-carat gold could last.
Price risks
- Festive demand can change quickly with gold prices.
- Diamond prices may not stay low.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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