18-carat is new gold standard for young buyers

Kolkata: A surge in gold prices led to a 25% year-on-year increase in demand for 18-carat jewellery in 2024, according to industry executives. They said younger consumers preferred the more affordable 18-carat rose gold and studded white gold along with plain jewellery to 22-carat gold, which has traditionally been used in India for making jewellery.

On Wednesday, 18-carat gold was priced at around ₹59,120 per 10 grams, against ₹72,140 per 10 gm for 22-carat gold.

Both 18- and 22-carat varieties are hallmarked gold, allaying concerns over gold purity.

Hallmark Unique Identification, a six-character alphanumeric code, is issued to identify and track gold jewellery.

"In 2024, Indians consumed 225 tonnes of 18-carat gold jewellery, a 25% increase compared to 2023. The jump is quite high because earlier there used to be a 5-10% increase in demand for 18-carat jewellery," said Rajesh Rokde, chairman of All India Gem & Jewellery Domestic Council.

The total consumption of 22-carat gold in the country varies between 500-550 tonnes annually. Consumption of 18-carat gold was 180 tonnes in 2023 and 162 tonnes in 2022.

The lower the caratage, the stronger the jewellery. "Therefore, jewellers are experimenting with new and modern designs which are readily being purchased by the younger generation," Rokde said.

The trend also picked up in southern India, the largest gold-consuming region in the country.

Varghese Alukkas, managing director of Joy Alukkas, said, "Our stores have witnessed a 15-20% demand hike in 18-carat jewellery and the buyers are mainly the young crowd."

Many jewellers have launched gold jewellery in 14-carat and 9-carat gold as well. The India Bullion & Jewellers Association has written to the Bureau of Indian Standards, seeking introduction of hallmarking in 9-carat jewellery.

Suresh Krishnan, vice-president sales of the listed firm PNG Jewellers, said, "There was a 15-18% growth in the demand for 18-carat gold jewellery in 2024 than in 2023. That's because young customers in the age bracket of 25-35 years are in favour of lightweight jewellery. The internet and social media also sensitised the target audience about fashion trends, helping popularise 18-carat jewellery."