Editor’s Note
This article highlights a significant market shift in India, where record-high gold prices in 2025 are suppressing demand during the crucial wedding and festival season, marking a departure from traditional consumption patterns.
Gold prices have risen sharply in 2025. As a result, a decrease has been observed in the number of people buying it. Meanwhile, the wedding season has also begun at this time. A decline in demand for gold is being seen even in this season. On October 16, 2025, a few days before Diwali, the price of gold on MCX reached a record level of ₹128,395 per 10 grams. By November 12 this year, gold prices had increased by more than 62%. According to The Economic Times, due to the sky-high price of gold, Indian customers are turning towards cheaper alternatives. Among these, the demand for Lab-Grown Diamonds (LGDs) is the highest.
Says Praveen Govindu, Partner at Deloitte India. Compared to last year, gold prices have increased by 30 to 35%, making it difficult for many buyers to purchase traditional gold jewelry.
Companies manufacturing lab-grown diamonds, such as Limelight, Akiorah, and Lucira, are seeing a massive surge in their demand compared to the same period last year.
Says Pooja Seth Madhavan, Founder and MD of Limelight Lab Grown Diamonds.
Mumbai-based lab-grown diamond firm Lucira is also seeing tremendous demand in the bridal and gifting segment due to its engagement rings, tennis bracelets, and special collections.
Said Rupesh Jain, Co-founder of Lucira.
A craze for lab-grown diamonds is also being observed among Gen Z and young millennials. According to experts, jewelry is now being viewed as a fashion accessory to be worn, not as an asset to be stored. This shift is leading buyers to create versatile wardrobes containing various types of jewelry for different clothes and occasions. Lab-grown diamonds are available at a lower price. Because of this, customers can buy more pieces without compromising on style or quality.
