As gold loses lustre, silver and lab-grown diamonds drive new growth

Gold prices: A shift in global consumption patterns is reshaping India's gems and jewellery exports, with buyers increasingly favouring silver jewellery, platinum pieces and lab-grown diamonds over traditional gold products amid economic uncertainty and elevated precious metal prices.

While India's overall gems and jewellery exports declined 2.49% year-on-year to $1.41 billion in May 2026, several categories linked to affordability and changing consumer tastes recorded robust growth, underscoring an evolving market dynamic.

Silver jewellery

Silver jewellery recorded the strongest performance among major product categories. Provisional exports during April-May 2026 surged 172.53% to $365.77 million, compared with $134.21 million in the corresponding period last year.

The sharp rise reflects growing international demand for affordable alternatives to gold, rising fashion-driven consumption and improving export prospects. With gold prices remaining volatile, consumers are increasingly turning to silver as a more accessible option without compromising on aesthetics.

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Platinum gains traction

Platinum jewellery exports also posted healthy growth, rising 24.97% year-on-year to $41.22 million during April-May 2026 from $32.98 million a year earlier.

The trend highlights a growing preference for contemporary premium jewellery that offers the appeal of a precious metal while remaining relatively cost-effective compared with gold. Industry participants say platinum is increasingly finding favour among consumers seeking both exclusivity and value.

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Lab-grown diamonds

Lab-grown diamonds maintained their momentum, with provisional exports of polished lab-grown diamonds climbing 25.99% to $101.50 million in May 2026 from $80.56 million a year ago.

For the April-May period, exports stood at $194.78 million, up 1.98% year-on-year. In volume terms, exports rose 16.81% to 28.34 lakh carats.

The category's growing popularity is being driven by cost-conscious consumers and the emergence of a dedicated customer base attracted to competitively priced stones. The segment has increasingly positioned itself as an affordable luxury alternative amid challenging economic conditions.

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Gold jewellery exports

In contrast, gold jewellery continued to struggle. Total exports of plain and studded gold jewellery fell 14.75% year-on-year to $758.44 million in May.

Plain gold jewellery was hit particularly hard, with exports plunging 29.39% to $294.87 million. Over April-May, shipments of plain gold jewellery declined 40.11% from a year earlier, reflecting the impact of high gold prices and cautious spending by international buyers.

Studded gold jewellery, however, showed greater resilience. Although exports slipped 1.79% in May, cumulative exports during April-May rose 6.71%, aided by demand for lower-carat products that are relatively more affordable.

FTAs: A ray of hope

Commenting on the sector's performance, Colin Shah, Managing Director of Kama Jewelry, said signs of revival were emerging as geopolitical tensions eased, though exports are expected to remain under pressure until global conditions stabilise.

He added that new free trade agreements could help exporters tap newer markets and sustain business momentum.

The latest trade trends suggest affordability and value are increasingly shaping global jewellery demand, signalling a gradual shift away from conventional gold towards alternative precious metals and lab-grown stones.

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