New Delhi [India], May 28 : There has been a shift in preference by gold jewellery buyers with the rising prices of the yellow metal. Talking 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 jewelry.
While the overall value of gold jewellery sales has increased, the per-customer volume has declined, he said.
"We are creating lighter-weight jewelry 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 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 jewelry."
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 that buyers are staying away from purchasing gold jewellery or investing in the metal, owing to an unexpected rise in prices.
Gold prices, both in India and worldwide, are trading at their all-time highs or nearabout, due to its safe-haven appeal amidst ongoing trade uncertainties. The uncertainties surrounding Trump's reciprocal tariffs plan and counter-tariffs also came as a shot in the arm to international gold prices.
Coming back to Asher, asked about the Federation of Indian Export Organisations' (FIEO) projections of USD 1 trillion in exports in 2025-26, he emphasized 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, MP Ahammed, Chairman of Malabar Group, has 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 jewelry 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 Management of Foreign Exchange Reserves by the Indian central bank, the gold share in 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, the gold's share was at 9.32 per cent.
Historically, gold, as an asset, is considered to be a haven as it typically manages to retain or appreciate its underlying value in times of turbulence.
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