Lower caratage jewellery widely accepted by buyer!

Sachin Kothari, Director-Augmont Gold for All, said; “In January 2024, the Indian government raised the import duty on gold and silver coins and findings from 11% to 15%. This comprises a 10% Basic Customs Duty and a 5% Agriculture Infrastructure Development Cess. The fundamental goal was to standardize tax rates and hence avoid observed circumvention. This action was done to close a gap and bring duty on gold finds and coins in line with total customs duty rates on gold bars. This will eliminate trade sections that take advantage of duty arbitrage.”

In the era of rocketing gold price, buyer taste & preferences are evolving. They prefer lower caratage daily wear jewellery in general and hence demand is up!

According to the World Gold Council, daily wear/fashion jewellery accounts for 45-50% of the market. Unlike the bridal segment, which is primarily 22-carat, daily wear products cover 22-, 18- and 14-carat. Even so, 22-carat remains dominant with more than 80% of the market, and 18- and 14-carat combined account for a 15-17% share, with both having increased over the last decade.

14-carat jewellery has only emerged in the last two or three years and, as it stands, only a small number of retailers currently offer this lightweight, relatively low-carat product. The daily wear category covers a wide range of items, including earrings, rings, chains, mangalsutras, bangles and bracelets, ranging from 5g to 30g.

The growth in lower caratages has been driven by three factors: the growing popularity of modern designs; the increase in rupee gold prices; and the growth of studded diamond jewellery. Studded diamond jewellery is predominantly sold in lower caratages (14-carat and 18-carat) for two reasons: first, the studded diamond jewellery is purchased for adornment rather than investment.

Second, lower carat studded diamond jewellery is typically harder and so lends itself to stone-setting better than softer alloys. It is also easier to make thinner and more delicate designs in harder alloys, which again works better when the designer wants to set stones.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top