- Indian Women preferring Lab-Grown Diamonds due to Affordability and Choice
- LGDs act as a Popular Alternative to Natural Diamonds
- Gold remains a Preferred Savings Instrument at Indian Households
Kotak Institutional Equities reports that Indian women are increasingly incorporating a mix of natural and lab-grown diamonds into their jewelry, driven by factors like higher education, disposable income, and evolving fashion preferences. This shift is expected to alter the traditional diamond market, making lab-grown diamonds a popular alternative.
Lab-grown diamonds (LGDs) are gaining popularity due to their affordability compared to natural diamonds, potentially altering the traditional diamond market dynamics and offering consumers more choices in their purchasing patterns.
Indian households also prefer Gold's role as the store of value is strong, but its investment form could evolve. Financial gold products like ETFs may attract more household investments, potentially reducing demand for physical gold jewelry. This shift could redefine Indian consumers' approach to gold and jewelry purchases, as gold remains a preferred savings instrument. As a dominant preference in Indian societies, $300 billion worth of gold has been purchased and $194 billion invested in equities.
The jewelry sector is set for growth due to emerging trends, with gold being seen as an asset with value over time, while LGDs offer an affordable alternative. The rise of LGDs and financial gold could impact jewelry companies' revenue growth, profitability, and stock valuations. Households may switch to gold ETFs, while LGDs gain market share at a lower cost.
