Gold Price India: Is Demand For 18 Carat Yellow Metal Rising?

Demand for gold jewellery in India is high as the country has emerged as the second largest gold jewellery consumer all across the globe as per the 'Jewellery Demand and Trade' report issued by World Gold Council earlier this year on January 19, 2023. India purchased a whopping 611 tonnes of yellow metal jewellery in 2021, second only to China (at 673 tonnes).

According to the World Gold Council, plain yellow metal jewellery accounts for approximately 80 -85% of the market share and largely of which remains 22-carat gold. However, the market for 18-carat jewellery is also picking up. Meanwhile, daily wear jewellery accounts for nearly 40-45% of the market.

The report stated that gold jewellery exports in India surged significantly from US $7.6 billion in 2015 to US $ 12.4 billion in 2019. Bridal jewellery enjoys nearly 50-55% in the market share.

When it comes to 18k gold, it includes 75% gold and 25% alloy metals. It implies that for every 18 grams of 18k gold, 13.5 grams remain gold and 4.5 grams include other metals such as copper, silver or nickel. Buyers frequently opt for 18k gold for their jewellery as it can effectively balance strength and affordability. Meanwhile, when it comes to 24 carat gold, it consists of 100% pure gold and there will no other metals mixed in it.

24 carat gold is more expensive when compared with 22 carat and 18 carat gold. 24 carat gold is soft and this is the reason why is it is not used for making regular jewellery pieces. 22 carat gold is largely preferred in making gold jewellery. When it comes to 22 carat gold jewellery, 22 parts of the jewellery will be of gold and remaining two will consist of metal such as zinc, nickel, and other alloys.

When other alloys are mixed, it can significantly help in making the texture of gold hard and therefore the jewellery piece will become robust and durable.
Experts say customers these days look for customization in their jewellery designs and 18 carat gold offers greater durability. 18 carat gold has emerged a desired option for lightweight jewellery.

Price of 18 carat gold in India: The price of 10 grams of 18 carat gold in India is Rs 45,900 after the decline of Rs 120. If you are planning to buy 100 grams of 18 carat yellow metal in India, it will cost you Rs 4,59,000.

Meanwhile, price of 22 carat of 10 grams yellow metal in India today is Rs 56,100 after the dip of Rs 150 and price of 24 carat of 10 grams gold in India today is Rs 61,200 after the fall of Rs 160.

Brokerage firm Motilal Oswal in its latest report indicated that yellow metal is likely to hover in the range of 63,000 in medium term.

"This year, gold witnessed a roll-a-coaster ride providing both bulls and bears an opportunity; which too offered bargain levels for long-term investments. The aggressive rate hikes by major central banks briefly took the sheen out of bullion; however, recent developments regarding geo-political tensions and expectations of a pivot in current monetary policy stance provided strong support to gold prices," said Motilal Oswal.

"However, the risk premium is being priced in gold, from the pandemic to the Russia-Ukraine war and the latest Israel-Hamas dispute. An ease-off in the Middle East dispute and/or continuation of the hawkish stance from the Fed could weigh on gold prices. However, the above factors could have a hangover for longer than expected and keep the party going for gold bulls helping it guide towards the medium target of Rs 63,000," added Motilal Oswal.