Rising gold prices are changing jewellery-buying patterns in India, with some consumers turning towards silver and lighter jewellery as more affordable alternatives.

Gold prices have remained at elevated levels, prompting buyers to focus more on their budgets rather than the weight of jewellery. Industry executives told The Economic Times that consumers are increasingly choosing lightweight designs, lower-carat gold and, in some cases, silver products to manage the impact of higher prices.

The shift comes as the price of gold has risen sharply. ET reported that gold was trading at around ?1.57 lakh per 10 grams in Mumbai during Ganesh Chaturthi, about 60% higher than the previous year. Gold jewellery sales volumes during the festival were reported to be around 15% lower year-on-year.

Jewellers are responding by offering smaller and lighter designs, while consumers are also increasingly exchanging old gold jewellery for new pieces. Silver is emerging as another option for buyers who want precious-metal jewellery at a lower overall purchase value.

However, the trend does not mean that silver demand is rising across every segment. Silver itself has experienced significant price volatility. The Economic Times reported in September that investment demand for silver had weakened following a sharp fall from its January peak, leaving refiners and dealers with growing inventories.

The broader jewellery market is therefore seeing a shift in consumer behaviour: rather than completely abandoning precious-metal purchases, many buyers are adjusting the weight, purity, design and type of metal they purchase as gold prices remain high.

In simple terms, expensive gold is encouraging some Indian consumers to look at silver and smaller jewellery pieces, but overall silver demand remains mixed across different segments.