Gold prices have experienced another significant increase, with 22-carat gold rising by ₹3,849 per bhori just five days after the previous hike. According to the Bangladesh Jewellers Association (BAJUS), the new rates came into effect at 10am on Thursday (August 20), following a rise in pure gold prices in the local market. Under the latest adjustments, 22-carat gold now costs ₹240,628 per bhori including VAT, while 21-carat gold increased by ₹3,616 to ₹229,781 per bhori, and 18-carat gold rose by ₹3,149 to ₹197,355. This marks the second price hike in just five days, as BAJUS had previously raised 22-carat gold by ₹2,158 to ₹236,779 per bhori on August 15. The price increases are particularly significant given that gold prices had surged by 52% in FY26, leading to a 21% decline in consumption and ICRA's predictions of a 20% market shrinkage in FY27.
Major jewellery companies are reporting significant growth in 9-carat sales compared to traditional categories. As reported by NDTV Profit, Piyush Seth, chief category merchandising and design officer of CaratLane, stated that 9KT jewellery contributes approximately 5-10% of their overall jewellery sales and expects this share to grow further. Simran Shah, VP - Sales at Kama Jewelry, revealed that the product category is driving over 25% of sales, followed by 14-carat comfortably at 20% and about 12-15% for 18-carat jewellery. The initial year after 9-carat hallmarking introduction has shown robust performance, with industry experts predicting this category could achieve 3-15% market share of the total jewellery pie in the future. The gold rate today in India continues to influence these sales patterns, with 22KT gold rates showing significant variations across different cities due to local demand and cost factors.
The purity differences between gold categories create significant cost variations for consumers. According to Mint reports, 24KT gold has 99.9% purity, while 22KT contains 91.6% pure gold, 18KT has 75% pure gold, 14KT has 58.5% pure gold, and 9KT has 37.5% pure gold. Jia Dholakia, head of design at Verlas Jewellery, noted that 9KT gold offers a significant cost advantage due to its lower gold content, though overall prices also reflect craftsmanship, making charges, design intricacies, and the value of diamonds or gemstones used in pieces. Disi Somani, founder of Dishis Designer Jewellery, estimates that 'the total gold value of 9-carat gold is estimated to be about 60-65% lower than 24-carat gold of the same weight', with retail price differences ranging 40-60% depending on design complexity. The latest gold rate updates show these cost advantages are particularly relevant as 22KT gold rates remain the most affordable option for price-conscious consumers.
The 9-carat category is attracting young, price-conscious consumers who prioritize value over traditional gold investments. As reported by NDTV Profit, Prithviraj Kothari, managing director at RiddiSiddhi Bullions, described the typical buyer as a 'young working professional, often a first-jobber, college-goer, or someone buying their first piece rather than inherited jewellery'. Aarav Bafna, director at Akoirah by Augmont, emphasized that 9-carat is being viewed as an 'accessible lifestyle category rather than a traditional investment purchase'. The category's popularity is reflected in its designs, with earrings and rings being the strongest-performing categories in 9KT jewellery, followed by pendants, with demand largely driven by contemporary, everyday designs suited for workwear and casual occasions. Most pieces have minimal yet modern designs, with primary customers looking for stylish gold jewellery under ₹20,000. The gold rate today in India continues to influence these demographics, with younger consumers showing preference for 9KT gold due to its affordability and accessibility.
Industry experts anticipate continued growth in the 9-carat segment despite traditional market dominance. According to Mint reports, Prithviraj Kothari noted that while sales growth has been steady rather than explosive, 9-carat is 'growing faster than 14 carat did in its early years'. Aarav Bafna highlighted that 9-carat has the strongest opportunity in gifting, self-purchase and fashion-led festive collections, complementing rather than replacing the traditional market. While volume-led gold sales are expected to decline, the gold jewellery industry is expected to see growth of 14-16% in FY27, as per ICRA, indicating that consumer purchasing power for gold jewellery remains intact despite rising prices. The category's success will likely depend on its ability to expand beyond casual wear into more formal occasions while maintaining its cost advantages for younger consumers. The gold rate today in India continues to play a crucial role in this evolution, with investment-focused options like sovereign gold bonds and ETFs gaining popularity alongside traditional jewellery purchases.
