Bengalureans 'balance sentiment with practicality' opting silver amalgams this festive season as gold prices soar

Bengaluru: With gold prices touching record highs, many Bengalureans are opting for a mix of gold and silver this festive season to balance cost and tradition, jewellers say.

As of Friday, gold was priced at Rs 1,34,950 for 10 grams of 99.9% 24K gold. The surge has led to a nearly 50% fall in ornament sales compared to last year, though investment purchases such as gold bars and coins have risen by around 20%.

Some customers are even selling old jewellery to take advantage of the high rates — a move considered inauspicious during festive times, but increasingly common this year.

Srinivas R, Secretary of the Jewellery Association Bengaluru, said shoppers were strategically mixing gold and silver purchases. "People are balancing sentiment with practicality. They want to celebrate, but also invest wisely,” he said.

Jewellery stores, especially in northern Bengaluru, have seen a rise in customers selling old ornaments, reflecting a broader shift from emotional to investment-driven buying.

Saumen Bhaumik, Managing Director of CaratLane, said that while soaring prices usually discourage buyers, there is now a tilt towards lightweight, versatile jewellery. “Customers prefer aesthetically appealing designs with lower karat options such as 9KT and 14KT. The emotional connection to design seems to outweigh price sensitivity,” he told DH.

To attract buyers, CaratLane is offering a complimentary 0.5g gold coin on purchases of Rs 35,000 and above.

Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, said that the demand for 22K and 18K ornaments remains steady despite record prices. “Pre-bookings are healthy, and we are expanding our showrooms ahead of Deepavali,” he said.

Traditional jewellers such as Malabar, GRT, and Jos Alukkas have reported reduced footfall, prompting heavy festive promotions and giveaways. Jos Alukkas, for instance, is offering discounts and prize draws to attract customers.

Meanwhile, many buyers are choosing small gold coins and bars as investment assets, often preferring 1g 24K coins with a 2% to 4% surcharge and GST.