Pooja Sheth Madhavan, the founder of Limelight Diamonds, the largest LGD brand in the country, stated, “Our sales saw a huge increase this Diwali, with revenue surging 2.2 times (a 120% increase) compared to the previous year.” Madhavan further added, “Acceptance for LGD jewellery has significantly increased, and jewellery with bigger solitaires, especially those above 2 carats, was trending in metro cities.”
LGDs, which have emerged as an alternative to natural diamonds at a more affordable price, gained popularity this festive season as prices dropped to less than half of the previous year. The price of LGD rings with a 1-carat solitaire fell to Rs 80,000 to Rs 1 lakh, compared to Rs 2 lakh last year, significantly lower than the Rs 5 lakh cost of a 1-carat natural diamond ring.
Madhavan expressed optimism about the future of LGD jewellery sales, stating, that they have witnessed a significant increase in sales of pure solitaire-based jewellery, even in tier-2 cities through our point of sales. This category will continue to prosper, and the company plans to open 10 additional stores in the coming months.
Smit Patel, director of Greenlab Diamonds, a business-to-business player in the LGD segment, revealed that all of their stock was purchased by retailers. He said, “I am left with no stock of LGD. Last year, there were only a few LGD retailers, but this year the number has increased to 4,000, indicating a huge demand for LGDs.”
It is worth noting that Patel’s company had manufactured the 7.5-carat LGD that Prime Minister Narendra Modi gifted to Jill Biden, the first lady of the US, during his state visit in June.
In addition to LGDs, digital gold also witnessed a significant rise in sales during the Dhanteras-Diwali period. SafeGold, a digital gold platform that allows consumers to lease their gold to jewellers for income generation, reported a 50-60% year-on-year growth.
Rhea Chaterji, head of the consumer business at SafeGold, shared, “This year, the highest investment in our digital platform was Rs 3 crore, which means the person had accumulated 4.7 kg of gold with us. Last year, the highest figure was 1.5 kg of gold.” Chaterji also noted that the average ticket size for repeat customers was Rs 13,000, while for new customers it was Rs 17,500. The platform observed investments ranging from Rs 1,500-2,000 through payment platforms and Rs 9,000-13,000 through banking platforms.
According to Chaterji, the customers comprised a mix of older millennials, young parents, and financial advisors who typically allocate 7-10% of their portfolio to gold and subsequently lease it.