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A new option has emerged amid gold inflation

These days the prices of gold are touching the sky. It has been a tradition in Indian families to buy gold extensively during weddings, but this year's story is a little different. Gold prices are continuously making new records, due to which the budget of the common man is getting spoiled. However, Indian buyers are no less, they have found a new and smart way to deal with inflation.

According to a CNBC report, even though gold The prices may be at all time high, but there is no silence in the bullion markets. Shopping continues, only the method has changed. Now people are giving preference to 14 and 18 carat jewelery instead of 22 carat pure gold. This change is starting a new trend in the jewelery market.

Cheap alternative taking place of 22 carat

For decades, it was believed that 14 or 18 karat gold was used only for making diamond jewelry because it required strength. But now rising prices have forced people to choose these options even in plain gold jewellery. Now a new segment has emerged in the market, where low carat jewelery is being sold and bought with pride.

The example of a customer Parul is quite accurate to understand this change. He recently told how inflation changed his decisions. Parul says, “I bought 22 carat jewelery for my daughter, but now gold has become so expensive that I am choosing 14 or 18 carat for my son's lucky chain.” This is not the story of just one family, but the same mathematics is being applied in thousands of homes in the country to manage the budget.

Demand for pure gold halved

According to Ahmedabad Jewelers Association, the price of gold at the beginning of 2025 was around Rs 80,000 per 10 grams. By the end of the year, this figure almost doubled to Rs 1.42 lakh. Such a huge increase has broken the backs of buyers.

Market experts say that till two years ago, the share of making 22 carat jewelery for weddings was 75% of the total purchases. But now it has reduced to only 50%. Gold expert Manoj Soni says that without gold, Indian weddings look dull, that is why people cannot stop buying. In such a situation, the use of 14 to 18 carat as the base metal for rings, bracelets and even diamond jewelery is increasing rapidly.

Why is gold on fire?

This question is bound to arise in the mind of the common man that why is gold becoming so expensive? Commodity experts believe that there are many international reasons behind this. Geopolitical tension is at its peak all over the world. The war between Russia and Ukraine is showing no sign of stopping, while America's ban on the shipment of crude oil from Venezuela and the military strike against ISIS in Nigeria have added fuel to the fire.

Whenever tension increases in the world, investors rush towards gold as a safe investment, due to which prices increase. Apart from this, the inflation rate is decreasing in America and there is a softening in the labor market there. The market expects that the US Fed may cut interest rates next year. When interest rates fall, investing in gold becomes more attractive, providing further support to its prices.