With rising gold prices, people have found a clever workaround; instead of 22-karat gold, they are now opting for this excellent alternative.

At the beginning of 2025, the price of gold was ₹80,000 per 10 grams, which has now reached ₹1.42 lakh. This is making it unaffordable for the average person, yet the purchase of jewelry continues.

Gold prices in India are seeing a record surge this year. On Friday, December 26, the price of 100 grams of 24-karat gold increased by ₹58,000, and the price of 10 grams increased by ₹5,800. Gold prices reached record highs across the country on Friday, just one day after Christmas.

During this period, gold was cheapest in Hyderabad at ₹1,40,020 per 10 grams, while it was most expensive in Chennai at ₹1,40,620 per 10 grams. This surge in gold prices is putting it out of reach for the middle class. However, a report has also revealed that despite this price increase, people have not stopped buying gold. This means that gold purchases are still continuing in the bullion market. People have found a smart way to buy it.

People have come up with this workaround:

In fact, people are now prioritizing 14 and 18-karat gold instead of 22-karat pure gold, which was previously used only for diamond jewelry. With this change, a new trend has emerged in the jewelry market. Previously, 14 and 18-karat gold were used in diamond-studded jewelry because they are strong and durable. This ensures that diamonds remain securely in place in rings and other jewelry and do not easily break or bend. However, amidst the rising gold prices, people have started buying and selling these lower-karat gold items. Demand for Pure Gold is Declining

According to a Moneycontrol report, the Ahmedabad Jewellers Association says that the price of gold, which was Rs 80,000 per 10 grams at the beginning of 2025, has now reached Rs 1.42 lakh. Two years ago, 22-karat gold accounted for 75 percent of the jewelry made for weddings, but this has now fallen to 50 percent.

Market experts say that in the coming times, the demand for 14-18 karat gold will continue to rise amidst increasing gold prices. This is because, with the increased prices, buying 22-karat gold jewelry is not feasible for everyone. Therefore, 14 to 18 karat gold is emerging as an alternative, as weddings feel incomplete without gold jewelry.

The rally won't continue next year

Meanwhile, Nilesh Shah, Managing Director of Kotak Mahindra AMC, said that the rally in gold and silver seen recently will not continue in 2026. However, the outlook remains positive. In a conversation with ET NOW, Nilesh Shah advised investors to follow the 'discipline' of asset allocation for better returns. He said, "The kind of rally we have seen in precious metals is unlikely to be repeated in 2026. However, central bank buying and industrial demand for silver, especially from electric vehicles, keeps the outlook positive for both gold and silver."