New Delhi: There has been a shift in preference among gold jewellery buyers due to the rising prices of the yellow metal. Speaking to reporters on Wednesday in the national capital, O. Asher, Managing Director of Indian operations for Malabar Gold and Diamonds, said rising gold prices are driving customers to shift from 22-carat to 18-carat jewellery.
While the overall value of gold jewellery sales has increased, the per-customer volume has declined, he said. “We are creating lighter-weight jewellery while maintaining the same designs to keep pieces within our customers’ budgets,” Asher explained.
“If someone has a budget of one lakh rupees, they cannot increase it, so we’ve adapted our strategy. By keeping designs identical but reducing the weight slightly, we ensure customers’ aspirations aren’t compromised,” Asher added. “In some regions, we have observed customers transitioning from 22-carat to 18-carat jewellery.”
Publicly available data showed that international gold prices rose at an unprecedented pace in 2025, soaring over 25 per cent. Over the past year, they have risen about 45 per cent. Analysts say buyers are staying away from purchasing gold jewellery or investing in the metal due to the unexpected rise in prices.
Gold prices, both in India and worldwide, are trading at or near all-time highs due to their safe-haven appeal amidst ongoing trade uncertainties. The uncertainties surrounding Trump’s reciprocal tariffs plan and counter-tariffs have also boosted international gold prices.
Coming back to Asher—when asked about the Federation of Indian Export Organisations’ (FIEO) projections of USD 1 trillion in exports in 2025–26—he emphasized that the target was reachable.
“Our focus is to manufacture in India and market to the world. We operate in 13 countries, and if businesses work in line with our Prime Minister’s vision, I am 100 percent confident we will achieve the USD 1 trillion export target.”
Today, M. P. Ahammed, Chairman of Malabar Group, provided insights on market conditions. “Gold prices remain unpredictable, with no clear indication of future direction. However, recent surges stem from US President Donald Trump’s tariff policies and ongoing geopolitical tensions. Rising jewellery prices actually boost consumer confidence, as we’ve witnessed consistent price appreciation over the past 25–30 years,” Ahammed said.
Gold has become a preferred global reserve asset, with governments and central banks worldwide increasing their holdings. The share of gold maintained by the Reserve Bank of India (RBI) in its foreign exchange reserves has almost doubled since 2021.
According to a report on the Management of Foreign Exchange Reserves by the Indian central bank, the gold share in the forex kitty, in dollar terms, rose from 5.87 per cent in March 2021 to 11.70 per cent in March 2025. In September 2024, gold’s share stood at 9.32 per cent.
Historically, gold as an asset is considered a haven, as it typically retains or appreciates its underlying value in times of turbulence.