Catch a falling diamond! Indians want solitaires as price drops by 30% – The Times of India

Are you longing for that solitaire ring? This might be the perfect time. A sharp fall in diamond prices is changing jewelry buying trends in the country, with solitaires seeing increased demand among consumers aged 28 to 40, industry executives said. Sales in this segment are up nearly 25% year-on-year as improved affordability drives more buyers to the market.Neil Sonawala, director of Zen Diamond India, told ET that the price shift has significantly reduced the cost of popular pieces. A 1 carat engagement ring that cost between Rs 7-8 lakh in the previous financial year is now available for around Rs 5-5.5 lakh.He added that demand is also increasing in the lower price range. Stones priced around Rs 2 lakh are seeing higher offtake as record gold prices encourage buyers to choose diamond jewelery that uses less of the precious metal.“We have witnessed a 25-35% year-on-year increase in demand for solitaire in the current fiscal. This growth is mainly due to improved affordability following global price adjustments, along with a stronger consumer shift towards investment-based purchasing,” Sonawala said.Industry executives estimate the size of the Indian diamond market at Rs 80,000-90,000 crore.Natural diamond prices have fallen sharply due to weaker export demand. The slowdown follows high tariffs imposed by US President Donald Trump, while China, the second-largest buyer of Indian cut and polished diamonds, has also reduced its purchases.Rajiv Popley, managing director of Mumbai-based Popley & Sons, said the shift in purchasing behavior is being led by younger consumers.“Since the gold content in jewelry with diamonds is much lower, the young, ambitious generation is opting for solitaires for engagements and anniversaries. Millennials make up the majority of buyers. They buy solitaires worth Rs 2 lakh, which are cheaper than 20 gram gold rings or chains. Rising gold prices have boosted solitaire sales,” he told the agency.Zen Diamond India also reports a surge in new customers. The company has registered a growth of almost 35 to 40% in the number of starters, especially in the age group of 28 to 40 years. While engagement continues to dominate purchases, purchasing motivations are increasing.“While engagement remains the top purchase driver, nearly 30% of solitaire purchases are now self-purchases or milestone-driven,” Sonawala said.Jewelers said the correction in diamond prices has lowered entry barriers and expanded the consumer base.Atul Sinha, chief operating officer at CaratLane, says younger buyers are increasingly prioritizing meaning and individuality over heavy traditional designs.“The younger audience wants jewelry that reflects individuality, simplicity and meaning rather than traditional opulence. Customers today are actively seeking accessible yet high-quality alternatives, and that has accelerated the popularity of categories like 9-carat and 14-carat gold, as well as lightweight natural diamond jewelry,” Sinha said.He noted that the Bureau of Indian Standards (BIS) hallmark certification for 9-carat gold has boosted consumer confidence.“The recent BIS (Bureau of Indian Standards) hallmark certification for 9-carat has further boosted confidence in this offering, and since the inception of hallmarking, we have seen an almost 200% increase in monthly sales of 9-carat, reflecting how quickly consumers are embracing these newer carats,” he said.According to a report released by India Ratings & Research on Tuesday, high gold prices have depressed demand for traditional gold jewelery while studded jewelery has seen a revival.“Reshaping consumer behavior to accept record high gold prices as the new normal, along with recalibrating the product mix by increasing the share of studded jewellery, lower-purity (9-carat, 14-carat and 18-carat) gold jewellery, light and ultra-light pieces for the mass segment to accelerate inventory turns, will help jewelers deal with industry challenges in the short to medium term,” said Preeti Kumaran, senior analyst at India Ratings & Research.