Jewellery majors go light as gold prices remain firm

• Retailers turn to low-carat pieces to win buyers back

- VIVEAT SUSAN PINTO

JEWELLERY RETAILERS ARE increasingly shifting their attention to lightweight and low-carat pieces as gold prices remain firm amid trade, tariff and geopolitical uncertainties. The government's recent move to hallmark 9-carat gold jewellery has also come as a shot in the arm for retailers looking for more buyers ahead of the festive season.

Gold sales by volume fell by a record 60% in June—the steepest decline since the Covid-19 pandemic. This comes as gold prices have surged nearly 30% in the first half of 2025. Organised players—from Titan to Kalyan Jewellers, Senco to Malabar Gold and Diamonds—are experimenting with 18-carat jewellery in plain gold and 14-carat pieces in studded jewellery in a country where 22-carat jewellery is the norm in plain gold and 18-carat is the currency in studded jewellery.

Studded jewellery includes a mix of gold and gemstones or diamonds. Last week, Titan, the country's largest organised jewellery retailer, went a step ahead and began piloting 9-carat pieces at Mia stores. The company had earlier experimented with 9-carat jewellery at Caratlane in February.