Key points
- Domestic gold prices have jumped from around ₹76,000–77,000 per 10 grams a year ago to nearly ₹1.26 lakh per 10 grams in late November 2025, yet jewellery buying for weddings remains robust.
- Young couples are favouring 22K, 24K and even 18K lightweight jewellery, prioritising purity and resale over heavy, studded diamond pieces with high making charges.
- Wedding buyers increasingly see gold as an investment, as it can typically recover about 95–97% of its value on resale, while diamonds often fetch only around 80–90% of the original price.
- India’s cut and polished diamond exports are under pressure due to weak demand in the US and China and a steep 50% US tariff on Indian gems and jewellery under the Trump administration.
- Global oversupply and sharp price drops in lab grown diamonds have further dampened sentiment in the wider diamond market, nudging many consumers toward traditional gold.
Across major Indian cities, jewellers report that gold jewellery is clearly outperforming diamond sets this wedding season, with bridal families focusing on the metal’s safety and liquidity rather than showy designs. Many retailers say their wedding bookings are dominated by plain gold sets and bangles, while diamond necklaces and heavy studded pieces are seeing slower movement despite aggressive discounts and offers.
Industry data indicates that overall gold jewellery volumes were under pressure earlier in 2025, but the value of sales has remained high because of record prices and a shift toward investment oriented buying, including coins and bars alongside bridal jewellery. The World Gold Council notes that the November–March wedding calendar, with a heavy cluster of auspicious dates, is expected to support demand even as consumers trade down to lighter pieces.
Why 22K, 24K lightweight pieces are winning
Retailers say the sweet spot in the mass wedding segment is now lightweight 22K and 24K jewellery, which offers purity plus lower ticket sizes per piece, making it easier for price conscious buyers to stay within budget. Many stores are pushing compact necklaces, thinner bangles, and minimalistic chains that use less gold by weight but maintain a premium feel through design and branding.
Even 18K plain gold, without diamonds or coloured stones, is getting attention from younger couples who like contemporary designs but still want the comfort of holding a precious metal that can be liquidated in an emergency. Jewellers confirm that customers are explicitly asking about buyback terms and resale rates at the time of purchase, which is further boosting demand for high purity pieces over heavily studded jewellery with higher non recoverable costs.
Price shock in 2025, but buyers stay bullish on gold
Gold prices in India have surged sharply in 2025, with 24K rates hovering around ₹1.25–1.27 lakh per 10 grams in late November, compared with roughly ₹76,000–77,000 per 10 grams about a year earlier, implying a gain of more than 60% in that period. Some forecasts and market trackers show domestic prices hitting fresh highs during November in key cities like Delhi and Mumbai, reflecting both global bullion strength and rupee weakness.
Despite this steep rise, many households still consider gold a safer store of value than other luxury products, because most branded jewellers offer buyback policies under which customers can recover around 95–97% of the metal value, excluding making charges and taxes. In contrast, resale of diamond jewellery often yields only 80–90% of the original invoice value, and in some cases less, which, combined with the lack of significant price appreciation in diamonds over the past year, is driving more buyers toward plain gold.
Diamond exports suffer under US tariffs and weak global demand
India’s diamond industry, which cuts and polishes about 90% of the world’s stones by volume, is facing one of its toughest phases in years, as exports to major markets like the US and China remain weak. Industry bodies and rating agencies estimate that exports of cut and polished diamonds could shrink by around 17–20% this fiscal, following earlier declines, due to sluggish retail demand abroad and rising competition from lab grown stones.
The situation worsened after President Donald Trump’s administration imposed cumulative US tariffs of about 50% on a wide range of Indian goods, including gems and jewellery, from late August 2025, sharply eroding price competitiveness in the world’s largest diamond market. Trade data and council statements show that India’s gems and jewellery exports to the US have dropped steeply since the duty hike, and many exporters are scrambling to reroute shipments or seek new markets, even as domestic availability of polished stones rises.
At the same time, lab grown diamonds have gone through a dramatic price collapse because of oversupply, with analysts reporting steep multi year declines that have shaken consumer confidence and made buyers question long term value. This combination of high tariffs, slow global demand and falling prices in the lab grown segment has left many Indian diamantaires under pressure, while comparatively stable and rising gold prices have reinforced the metal’s appeal for both retail investors and wedding shoppers.
