Gold has always been a symbol of wealth, tradition, and security in India. When the price of 24 carat gold crosses a significant milestone like ₹1.1 lakh per 10 grams, it creates waves not only in the investment market but also in the jewellery sector. This blog explores how this price surge impacts jewellery demand, buyer behavior, and the overall gold market in India.
What Makes 24 Carat Gold Special?
24 carat gold is the purest form of gold available, usually 99.9% pure. It’s highly sought after for jewellery making because of its brilliance and purity. Unlike 22 carat or 18 carat gold, which have alloys mixed to enhance hardness, 24 carat gold is softer but more valuable and prized for investment and gifting purposes.
Current Trends in 24 Carat Gold Price
As of September 2025, the 24 carat gold rate has crossed ₹1.1 lakh per 10 grams, reaching record highs across major cities in India. This price surge is influenced by several global and domestic factors such as inflation, currency fluctuations, geopolitical uncertainties, and increasing demand during the festive and wedding seasons.
Impact on Jewellery Demand
Price Sensitivity Among Buyers
When gold prices rise, many potential buyers hesitate, leading to slower sales in the short term. Jewellery buyers, especially those looking for pieces for weddings or festivals, might delay purchases, waiting for prices to stabilize or drop.
Demand Shift Towards Lower Purity Gold
As 24 carat gold becomes expensive, some buyers shift their preference toward 22 carat or 18 carat gold jewellery which is more affordable and durable. This shift impacts the market share for pure gold jewellery.
Increased Interest in Gold Coins and Investment Bars
While jewellery demand might see some slowdown, investment in gold coins and bars tends to increase during high price periods as investors seek to hedge inflation and protect wealth.
How Jewellers Are Responding
Jewellers expect fluctuating demand during price surges but continue to push marketing campaigns around festivals and weddings to encourage early buying. They also introduce flexible payment options, discounts on making charges, and combine other offers to attract buyers despite high gold rates.
Buyer Tips When Gold Crosses ₹1.1 Lakh
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Compare Prices Across Cities and Sellers: Gold rates vary slightly across regions and vendors.
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Consider 22 Carat Jewellery for Durability: If pure gold budget is a concern, 22 carat is a practical choice.
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Buy During Festival Offers: Many jewellers offer discounts during key seasons.
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Invest in Smaller Quantities: Buying smaller grams spreads risk and cost.
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Stay Updated on Market Trends: Follow gold rate trends to decide best purchase timing.
Future Outlook for 24 Carat Gold Price
Experts predict that while gold prices may see some volatility, the long-term demand for 24 carat gold jewellery and investment remains strong in India due to cultural significance and inflation hedge properties. Upcoming festivals and weddings are likely to keep demand buoyant despite high prices.
Conclusion
The 24 carat gold rate crossing ₹1.1 lakh is a landmark moment reflecting global economic trends and local demand dynamics. While it tempers jewellery buying in the short run, gold’s timeless appeal means demand will recover and adapt. Jewellery buyers and investors can benefit from knowing market behavior, choosing wisely between gold purities, and leveraging festive season offers.
