High Gold Price Effect! Customers Shifts To 18-Carat Jewellery From 22-Carat: Malabar Gold

With gold prices hitting all-time highs, Indian jewellery buyers are changing their shopping habits. According to Malabar Gold and Diamonds, rising prices are pushing customers to choose lighter and lower-carat jewellery to stay within budget.

Speaking to ANI, O Asher, Managing Director of Malabar Gold and Diamonds (India), said, “Many customers are now opting for 18-carat gold instead of 22-carat due to high prices. The value of overall sales has increased, but individual purchase volumes have gone down.”

To address this shift, the company is making lighter-weight jewellery while keeping the same designs. “If someone has a budget of Rs 1 lakh, they cannot go beyond that. So, we reduce the weight slightly without changing the look. This way, customers still get what they want,” Asher explained.

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Gold Price Rise

In 2025, international gold prices have risen over 25%, and nearly 45% in the past year. As a result, many buyers are either holding back on gold purchases or choosing more affordable options. Gold prices in Delhi climbed Rs 500 on Wednesday to reach Rs 99,000 per 10 grams. Silver also saw a surge of Rs 1,000, reaching Rs 1,00,000 per kg.

Malabar Group Chairman MP Ahammed added that gold remains a trusted investment, especially during global uncertainty. “Prices are unpredictable, but long-term appreciation boosts customer confidence,” he said.

Globally, gold continues to be a preferred reserve asset. The Reserve Bank of India has nearly doubled the share of gold in its foreign exchange reserves — from 5.87% in March 2021 to 11.70% in March 2025.