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A diamond is forever, and the shiny rock looks great with almost everything, but you have your grandmother’s gold necklace on the other hand, treasured for decades — a symbol of tradition and family legacy. Now, contrast that with today's young professionals—many of whom are opting for sleek, modern jewellery, often adorned with sparkling diamonds or chic minimalist designs.
The shift from traditional gold to new-age diamonds is not just a change in style but also reflects deeper generational changes in financial priorities, attitudes toward wealth, and evolving values around sustainability.
With diamonds becoming more accessible and gold’s traditional hold loosening, the Indian jewellery landscape is transforming. But what’s driving this shift, and what does it mean for both consumers and the jewellery industry?
Gold’s Historic Dominance
For generations, gold has been the cornerstone of Indian jewellery traditions. According to the World Gold Council, India accounts for 25% of global gold demand, making it one of the largest consumers of gold in the world. Gold is often considered a safe, appreciating asset and has been used for religious, cultural, and financial purposes for centuries.
Traditionally, gold jewellery was seen as an investment as well as a status symbol, passed down through generations. As Harshvardhan Roongta, CFP of Roongta Securities, points out, "Gold has been the go-to investment for Indian families, offering liquidity and cultural significance that is hard to replace."
However, this isn’t to say gold’s prominence is without its drawbacks. One notable disadvantage is its fluctuating value. While gold tends to appreciate in the long run, its short-term price volatility can be a concern for young buyers who prioritize more immediate financial goals.
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Why Diamonds Are Winning Over Millennials and Gen Z
While gold remains a significant part of Indian households, younger generations are increasingly opting for diamonds. Lab-grown diamonds, which are chemically and physically identical to natural diamonds, have disrupted the traditional diamond market by offering a more affordable alternative. A study by the Gem & Jewellery Export Promotion Council (GJEPC) showed a 200% increase in lab-grown diamond exports from India between 2021 and 2023, reflecting their rising popularity.
MD of the Popley Group, Rajiv Popley highlights this shift, saying that lab-grown diamonds offer younger buyers a chance to own a piece of luxury without breaking the bank. "The affordability and sustainability aspects resonate with environmentally conscious consumers."
A growing number of younger consumers view diamonds as a personal statement rather than an investment, choosing designs that reflect their individuality and style. This is in stark contrast to their parents' generation, which often saw gold as a long-term investment for emergencies or family events.
Roongta adds, “The younger generation is more focused on diversification in their financial portfolios, putting their money into stocks, mutual funds, or experiences rather than traditional assets like gold. They view jewelry as more of a personal indulgence than a financial safety net.”
Another reason diamonds are becoming more popular is the rise of personalized jewelry. Young consumers prefer bespoke designs that align with their lifestyle and values. In a recent survey by Deloitte, 48% of Gen Z consumers in India said they prefer customized jewelry over mass-produced pieces, indicating a shift toward uniqueness over conformity.
Sustainability: A Driving Force Behind the Shift
Sustainability is a buzzword for today’s consumers, and jewelry is no exception. Lab-grown diamonds are seen as an environmentally friendly alternative to traditional mining, which has long been criticized for its environmental and ethical issues.
Popley elaborates, “There’s a growing awareness among young consumers about the environmental impact of mined diamonds. Lab-grown options offer the same brilliance and quality but without the carbon footprint, making them an attractive choice for eco-conscious buyers.”
In a 2022 survey by Nielsen, 63% of Indian consumers between the ages of 20 and 35 said they would prefer to buy products, including jewelry, from brands that are environmentally responsible. This shift in mindset is pushing jewelers to adapt, with many introducing eco-friendly collections to cater to this demand.
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The Future of Gold and Diamonds
While the younger generation's preferences are clearly shifting, it doesn’t mean gold is losing its place entirely. Gold still holds strong sentimental value, especially during weddings and festivals. In fact, gold jewelry demand spiked during the 2022 wedding season, and the World Gold Council predicts that India’s gold market will continue to grow as families balance tradition with modern choices.
However, the rise of diamonds, particularly lab-grown diamonds, suggests that the jewelry market is becoming more diverse. As Roongta aptly summarises, “The modern Indian buyer is financially savvy and style-conscious. While gold may still find a place in their portfolios, diamonds—particularly lab-grown—are becoming the new symbol of sophistication, luxury, and personal style.”
Whether you are team gold, team diamond, or a bit of both, one thing’s for sure: the jewellery choices of young Indians are as dynamic and unique as the generation making them. So, next time you’re shopping for a little sparkle, why not embrace both the old and the new?
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