As gold prices continue to climb sharply, Indian jewellers are turning to lower-karat jewellery to appeal to cost-conscious shoppers. Leading brands like Titan and Kalyan Jewellers are now offering more pieces made from 18-karat and even 9-karat gold, according to a report by Moneycontrol.
This move comes as domestic gold prices have jumped over 30% in the past year. On the Multi Commodity Exchange (MCX), prices recently hit a record high of ₹95,000 per 10 grams. Global investors are pushing up prices as they seek safer assets amid economic uncertainty, fears of a recession, and rising geopolitical tensions.
However, the steep rise in prices is also changing how consumers buy jewellery. Buyers are now shifting away from traditional 22-karat gold, which has long been the standard in Indian markets. Instead, they are opting for lighter jewellery, pieces made with less gold, or designs that include gemstones to reduce costs. This trend marks a major shift in consumer habits.
Titan, a Tata Group company, highlighted the issue in its latest earnings call. The company noted that consumers who usually buy jewellery below ₹50,000 are now spending less. Titan also said that jewellers themselves are avoiding low-cost products, as it is harder to offer good value at current gold prices.
Pure 24-karat gold is rarely used in jewellery because it is too soft. Instead, small amounts of other metals are mixed with gold to make it stronger. This results in more durable gold alloys commonly found in 22K, 18K, and increasingly, 9K jewellery.
By offering lower-karat options, jewellers hope to keep sales steady and meet the needs of price-sensitive customers in a challenging market.
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