Gold Prices Set To Drop This Diwali? Diamonds Turn India's Best Friend During Festive Season

Gold prices have surged, leaving Indian consumers rethinking their jewellery purchases this Diwali. With gold up around 54% over the 2025 festive season, buyers are opting for lighter necklaces, lower-carat gold and smaller diamond pieces. Meanwhile, small diamond prices have fallen by approximately 25%, making diamond jewellery a more accessible alternative. Retailers expect diamond jewellery sales to grow 15% to 20% this festive season, particularly for everyday pieces priced between ₹30,000 and ₹1 lakh. World Gold Council data also highlights the squeeze: Indians bought less gold but spent more, pushing the total bill to a record ₹1.98 lakh crore.