Gold Prices Soar: Is 18-Carat Jewelry the New Wedding Standard?

• Rising gold prices are shifting consumer preference from traditional 22-carat to 18-carat and 14-carat jewelry, especially for weddings.
• Despite higher prices, total gold jewelry sales value increased, but the weight purchased per consumer decreased, with buyers opting for lower carat options.
• Taxation (3% GST on gold, 5% GST on making charges) and making charges significantly widen the price gap, making higher carat jewelry more expensive.
• Wedding jewelry segment sees a major shift: 22-carat purchases dropped from 75% to 50% last year, with couples choosing 14-carcarat and 18-carat for affordability.
• Recycling old gold for new, lightweight designs and a focus on plain, investment-oriented 18-carat/14-carat jewelry are growing trends.

Why It Matters: Soaring gold prices are permanently changing Indian gold buying habits, favoring affordable 18-carat and 14-carat options.