“Jewellers Shift to 18-Carat and 9-Carat Gold to Attract Budget-Conscious Buyers”: SRINAGAR: Amid surging gold prices, many jewellers across India, including prominent players like Titan and Kalyan Jewellers, are increasingly offering lower-carat gold jewellery—such as 18-carat and even 9-carat items—to sustain sales and appeal to cost-conscious consumers, Moneycontrol has reported.
The shift comes as domestic gold prices jumped over 30 percent in the past year, with rates touching an all-time high of Rs 95,000 per 10 grams on April 16 at the Multi Commodity Exchange (MCX). The spike has been attributed to global economic uncertainty, rising recession fears, and escalating geopolitical tensions, prompting investors to turn towards gold as a traditional safe-haven asset.
The steep rise in prices has, however, altered consumer behaviour. Price-sensitive customers are reportedly scaling back their purchases of 22-carat jewellery and are showing increased preference for lighter, lower-carat, or gem-studded pieces with lower making charges. According to Moneycontrol, this marks a significant departure from traditional buying patterns, where 22-carat plain gold jewellery has long dominated the Indian market.
Titan, a Tata Group company, noted in its fourth-quarter earnings call that consumers who typically bought jewellery priced below Rs 50,000 are staying away from purchases. The company also indicated that jewellers themselves are “vacating” lower price bands, as it becomes increasingly unviable to offer the same value at current gold rates.
Jewellery is not typically made from 24-carat gold, which is the highest purity, due to the softness of the metal. A small percentage of other metals is added to improve durability, and this alloying results in commonly used purities such as 22-carat, 18-carat and now increasingly, 9-carat.Kashmir life.