A gram of 22-carat gold cost around ₹4,000 in October 2019. Today, it’s nearing ₹13,000. Despite this steep rise, the pull of the yellow metal remains undiminished — but how people buy gold has changed significantly.
According to jewellers, the soaring price has altered purchase patterns: the average quantum per transaction has dipped, more buyers — especially the young — are opting for lighter, everyday jewellery, and exchange of old gold has become more popular than ever.
Still, jewellers insist that the allure of gold as a long-term asset remains strong. For many, the price rise has acted as validation of its investment value, not deterrence. “They buy a car, and it depreciates. They buy gold, and it appreciates. This realisation is catching on,” said Shubadip Roy, designated partner, Bengal Jewellery.
Going light
On the eve of Dhanteras, jewellery stores across Calcutta, from the upscale showrooms in Gariahat and Camac Street to the small shops tucked away in bylanes, were bustling. With the wedding season approaching, demand is only expected to rise.
Jewellers said a younger generation of buyers is driving a shift toward sleeker, lighter designs that suit modern lifestyles.
“Forty per cent of our clientele is from the next generation. They want jewellery they can wear to work or office parties. Earlier, elders in the family preferred heavy, conventional jewellery, which they might wear only for social gatherings, maybe seven days a year,” Roy said.
To cater to this trend, jewellers are introducing ornaments made with lower caratage — including 18, 14, or even 9-carat gold — which also brings down the cost.
“One gram of 22-carat gold with GST and making charges costs nearly ₹15,000. The same in 9-carat gold comes to less than ₹6,000,” explained Suvankar Sen, MD & CEO of Senco Gold and Diamonds. “Pearls and other stones are being incorporated into the new designs to make the pieces look fuller. It’s a win-win for both the buyer and the seller.”
Ramesh Kalyanaraman, executive director of Kalyan Jewellers, added: “There’s a parallel demand for light, everyday-wear jewellery, driven by changing lifestyles and a preference for versatile, stylish pieces that offer both value and comfort. This trend complements traditional gold-buying patterns.”
Niharika Chowdhury, a 29-year-old architect from New Alipore, said she recently bought a pendant made with gold, white gold, sapphire, and diamond. “Had I bought a traditional item, I’d wear it four days a year. This, I can wear three days a week.”
Enduring appeal
The sharp price increase has validated the faith of long-time gold buyers, who now see their purchases appreciating significantly.
“Gold has always been a cultural and emotional asset,” said Soumik Roy Chowdhury, managing director, MPJ Jewellers. “Now, those who didn’t buy earlier are driven by fear of missing out. The sustained upswing is forcing them to rethink.”
Although average purchase quantities have dipped, overall buying has not. Many buyers are also using monthly instalment schemes, which jewellers said have gained traction.
Gold coins and bars are also seeing robust demand. “Gold coins in 5g and 10g sizes are popular in stores, while 1g and 2g coins move fast on quick-commerce platforms, often as festive gifts. Larger silver bars between 500g and 1kg are also in high demand,” said Kalyanaraman.
Exchange boom
With prices high, many customers are choosing to exchange old gold for new ornaments. “Four to five in every 10 customers want to exchange old gold,” said Sen of Senco.
Roy Chowdhury of MPJ echoed the trend, saying around 40% of customers are exchanging old pieces stored at home.