# Rising Gold Prices Drive Festive Demand for Diamond Jewellery in India

- URL: https://stocks.freetheai.org/news/rising-gold-prices-drive-festive-demand-for-diamond-jewellery-in-india-c2460d
- Published: 2026-10-13T04:16:23Z
- Category: commodities; sentiment: bullish; impact: medium
- Symbols: [NSE:SENCO](https://stocks.freetheai.org/symbols/NSE-SENCO)
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A sharp rise in gold prices is steering shoppers toward diamond jewellery for the upcoming festive season. Retailers forecast diamond jewellery sales to increase by 15% to 20% as lower prices for smaller stones make studded ornaments a cost-effective alternative to traditional gold pieces. Gold prices have jumped 54% compared to the 2025 festive season, while small diamond prices have dropped around 25% over the same period.

To cater to budget-conscious buyers seeking items in the 10,000 to 100,000 INR price bracket, jewellers are using lower caratage gold, such as 18-carat, 14-carat, and 9-carat metals. Retailers including Senco Gold Limited (NSE:SENCO), which traded at 334.9 INR, up 0.62%, report strong consumer interest in everyday wear items like earrings, pendants, rings, and bracelets. Buyers are also shifting from heavier traditional pieces to lightweight designs to manage costs.

With festive shopping starting on a strong note during Navratri, retail competition is intensifying across India as regional players expand their store networks and prepare for initial public offerings. Industry observers will monitor whether the preference for versatile, lightweight diamond jewellery persists throughout the festive period and offsets the impact of high gold prices on retail volumes.

## Key points

- Diamond jewellery sales are projected to grow 15% to 20% this festive season as consumers seek alternatives to expensive gold.
- Gold prices have risen 54% since the 2025 festive season, while prices for smaller diamonds dropped about 25% over the same timeframe.
- Jewellers are utilizing 18-carat, 14-carat, and 9-carat gold to offer accessible diamond-studded pieces in the 10,000 to 100,000 INR range.
- Senco Gold Limited (NSE:SENCO) expects 20% growth in everyday diamond wear such as rings, pendants, and bracelets.

## Questions and answers

### Why are shoppers choosing diamond jewellery over gold this festive season?

Gold prices have jumped 54% compared to the previous festive season, whereas smaller diamond prices have declined by about 25%. This makes diamond jewellery in lower gold caratages an affordable option for shoppers on a fixed budget.

### What price range is most popular for diamond jewellery purchases?

Consumers are actively purchasing diamond jewellery in the 10,000 to 100,000 INR price range, with strong demand for everyday items like rings, earrings, pendants, and bracelets priced between 30,000 and 100,000 INR.

### How are jewellers keeping diamond jewellery affordable for buyers?

Jewellers are crafting pieces using 18-carat, 14-carat, and 9-carat gold, allowing customers to buy lightweight and stylish diamond-studded ornaments without spending as much as pure gold demands.