Bengaluru jewellers eye 18- and 14-carat gold amid price surge

Bengaluru: Soaring gold prices in the last six months have pushed Bengaluru jewellers to think beyond conventional jewellery. Many are now planning to manufacture gold jewellery in 18- and 14-carat purity, cutting down prices by 25% and 45%, respectively, compared to traditional jewellery made from 22-carat gold.

While a few brands already offer such jewellery, many jewellers are starting to manufacture such options only now. There is demand for such lighter jewellery from consumers as well, they say.

“We have received such demands from consumers as well. For many, gold is a sentiment and they want to buy it for occasions, so we want to make it affordable for them. We are holding a meeting with all our members to understand customer demands and see how we can move to manufacture 14-carat jewellery,” said T A Sharavana, president of the Karnataka Jewellers’ Association.

The plan is to step down a little so that consumers can get a higher quantity of gold within their budget.

“The traditional jewellery which is made in 22 carats can be made in 18 carats, which cuts down the price by 15%. Since the density of 18-carat gold is lower, they will get more quantity, which as a whole would result in a 25% reduction in the price for the same-design jewellery with the same or even better finishing,” explained Vinod Hayagriv, Director of C Krishniah Chetty Group.

Jewellers are also planning to use 14-carat gold to prepare diamond jewellery usually made using 18-carat gold.

However, Sharavana noted that the association wants to ensure that the resale of 14-carat gold is also facilitated.

“There are some permissions we will need from the central government. Once we discuss this with the association, we will approach the Centre. It is important that we ensure all jewellers accept returns of 14-carat gold ornaments so customers have the option to resell,” Sharavana said.

Fluctuating gold prices have left jewellers in the city worried, and many have reported a 25% dip in business in the last month. Customers are mostly willing to buy gold when there is a rising trend since they feel the trend could continue and they would profit. However, when prices fall, they wait, hoping they will fall further. The rise and dip cycles over the last few days have left consumers confused, and as a result, many of them have put a hold on purchasing, jewellers said.

“In fact, February was better compared to January,” noted Hayagriv.

Industry experts say the situation may stabilise in a few days, and jewellery made of 18- and 14-carat gold may become common over the next few months.