India's Gold Price Surge Spurs Shift to Silver and Lighter Jewelry

Gold prices in India have reached new highs, prompting consumers to seek more affordable alternatives for their jewelry purchases. According to recent reports, gold is trading at around ₹1.57 lakh per 10 grams in Mumbai during the current festival season, a 60% increase from the previous year. This has led some buyers to opt for silver and lighter jewelry designs as more budget-friendly options.

Industry executives have noted that consumers are increasingly choosing lightweight designs, lower-carat gold, and even silver products to manage the impact of higher prices. Jewellers are responding by offering smaller and lighter designs, while consumers are also exchanging old gold jewelry for new pieces.

Silver is emerging as a popular choice for buyers who want precious-metal jewelry at a lower overall purchase value. However, investment demand for silver has weakened in recent months, leaving refiners and dealers with growing inventories.