Solitaire International spoke to select retail houses to gauge sentiments during the Diwali period, the country’s most significant festive season that drives jewellery sales. Amid market fluctuations, buyers increasingly leaned towards value-driven purchases, yet demand remained strong for high-end pieces prized for their distinctive craftsmanship and investment appeal. As expected, gold jewellery sales dipped marginally, but diamond jewellery kept the festive sparkle shining. While gold jewellery continues to be a popular choice, diamonds are emerging as a favoured investment, especially with the rise in solitaire sales.
Gold prices on Dhanteras this year surged by 30% compared to the same day last year, resulting in a 15% drop in sales volume to approximately 35 tons, down from 42 tons last year. However, total gold sales reached 47 tons throughout the entire Diwali 2024 period, according to figures shared by the India Bullion and Jewellers Association (IBJA). Silver sales during Diwali rose to 224 tons—the highest in two decades—marking a 35% increase compared to last year, despite a 40% rise in silver prices over the past year. According to IBJA, this shift could be attributed to customers opting for silver over gold due to the significant rise in gold prices.
Sunil Nayak, CEO of Reliance Jewels, noted that this Diwali, “we observed a significant uptick in demand for lightweight jewellery. Consumers are prioritizing pieces that are versatile. Younger buyers are seeking modern designs that can transition from daily wear to festive occasions with ease. The preference for colourful gemstones has also grown, with buyers looking to add a vibrant touch to their collections.”
Nayak further added that in the current economic context, consumers are becoming more value-driven in their purchasing decisions, combining high quality with a more accessible price point, making them more discerning when it comes to quality, design, and long-term worth. “With gold prices at an all-time high, customers are more conscious of the long-term value of their purchases. As a result, we’ve seen a clear trend towards jewellery that offers both aesthetic appeal and lasting asset value.”
Suresh Krishnan, Vice President Sales, PNG Jewellers, said, “We observed a steady sales performance with encouraging trends, despite only a marginal shift in total sales figures. The 30% increase in gold prices compared to last year led some customers to delay their high-ticket purchases, particularly for traditional Diwali purchases. However, we saw robust demand from wedding shoppers and those purchasing for other occasions, balancing the impact of price-driven caution. Overall, in value terms, we enjoyed a boost, attributed to the price increase itself.
“With the rise in gold prices, we observed a reduction in average ticket value as customers adjusted their spending. Buyers who would typically purchase 80-90 grams of gold opted for around 60-70 grams this year, reflecting a more budget-conscious approach.”
Pratik Dugar, Director at Indian Gem & Jewellery Creation, revealed that they saw good demand for gold jewellery and had high footfalls during the festive season. “In fact, we’ve observed that whenever gold prices go up, people tend to buy more as customers’ confidence in gold is reinforced.”
Sandeep Soni, Director, Mahabir Danwar Jewellers Pvt. Ltd. Noticed a big jump in gold jewellery sales as investment driven buying was seen across the categories at their store.
Diamonds Shine Bright
Classic designs are clearly in for the diamond jewellery segment with consumers opting for solitaires and halo settings.
Nayak of Reliance Jewels noted that diamond solitaires moved well this season. “Young consumers are gravitating towards minimalist designs, where clean lines and prong settings allow the diamond itself to shine, without excessive embellishment. Another rising trend is the hidden halo—where smaller diamonds are set beneath the centre stone, subtly enhancing the sparkle of the main diamond, adding depth and brilliance without overwhelming the design.”
In terms of carat sizes, Reliance’s Amanti Engagement Ring collection, featuring solitaires in the lighter carat range, was highly popular, appealing to customers who sought a timeless piece without being overly extravagant.
According to Krishnan of PNG Jewellers, he noted that diamond jewellery sales remained strong but didn’t fully meet their expectations. “Nonetheless, diamonds performed better than gold, consistent with ongoing demand trends. Statement wedding jewellery was the strongest performer within the diamond segment, along with lightweight options that continued to appeal to a broad customer base. Interestingly, carat preferences remained stable, reflecting a steady demand across the market without a major shift in sizes.” Krishnan also noted that demand for fancy-cut diamonds grew from 10% of the market to around 15-20%, marking a shift in consumer preference.
While gold jewellery sales stayed stable for Abhishek Kajaria, Owner, Avama Jewellers, he noted that diamond jewellery sales were stronger, especially for pieces that balanced elegance and versatility. “Carat sizes around 0.50 to 1 carat were the most sought after, with collections featuring classic and minimalist designs resonating well with buyers,” he noted.
Pratik Dugar Indian Gem & Jewellery Creation said that low-ticket diamond jewellery pieces like rings, earrings, bracelets, sold well, while solitaires up to 2 carats garnered more interest.
Soni of Mahabir Danwar attributed the rise in solitaire sales to lower diamond prices, noting that the demand for solitaires was driven by investment motives.
Consumers are taking a shine to diamonds in tier two towns as well. For instance, Mohinderpal Singh of New Light Jewellers, Sri Ganganagar, stated that “there is a niche segment that has been created by us for pret diamond jewellery. Earlier, consumers would only pick gold and silver jewellery, and sometimes gold jewellery studded with cubic zirconia. But since last year, we have focused our advertising diamond jewellery and that has helped us garner impressive results. Our diamond sales have gone up twice over the past one year. The ticket tags are below Rs. 1 lakh and consumers are more oriented towards designer daily wear.” Singh believes that social media has shifted consumer focus from weight to design, with even older buyers now seeking pieces that suit their style, often guided by younger family members for the perfect look.
Jewellery Trends
Kajaria of Avama noted that consumers opted for lightweight jewellery and versatile pieces, with increased interest in coloured gemstones like emeralds. Younger customers also showed preference for platinum and rose gold.
Consumers looking for traditional styles chose temple jewellery, Kalkatti, and antique jewellery, said Krishnan of PNG Jewellers, while polki and uncut jewellery experienced a notable uptick.