Record high gold prices have so far not only weakened buying sentiment among the average middle class but among also the rich and the super-rich consumers during the ten-week season that began with Christmas and ends om Mothers’ Day on March 8.

While the average middle class has stopped placing new orders for bullion purchase, millennials have shifted to designer silver jewellery and low-value handcrafted gold ornaments this Valentine’s Day.

“Many jewellery manufacturers and retailers have launched designer pieces in silver jewellery studded with coloured gemstones to attract customers this Valentine’s Day. Such jewellery has been a preferred choice for young couples this season. Also, low-ticket size basic ornaments such as rings and pendants are also selling but not to the tune of silver jewellery,” said Anantha Padmanaban, Managing Director, NAC Jewellers, a Chennai-based jewellery retailer.

Jewellers have started targeting millennials as their potential customers for the Valentine’s Day with innovative jewellery designs. They has reduced the token money to make ornaments affordable, and are selling stone-studded silver jewellery with a heavy look in the price Rs 10,000-15,000 price range.

Rajendra Jain, Managing Director (Gemstones), Swarovski India, said, “Many brands are targeting millennials through new collections of jewellery. Retailers aren't focusing solely on this season, but are looking at repeat orders from such consumers.”

“This year, a sharp increase in gold prices has turned consumers towards silver. But, instead of plain silver jewellery, consumers are looking at designer pieces for occasional and daily wear,” Jain added.

Gold prices hit a record high of Rs 40500 per 10 grams on Friday following global moves as geo-political uncertainty and the economic downturn made the bullion as a safe haven investment. Silver, however, continues to trade at Rs 46,100 a kg, which gives consumers a chance to own a piece of the precious metal without coughing up a large sum of money. Silver price retreated after surpassing the psychological barrier of Rs 50,000 a kg recently.

Meanwhile, jewellery and fashion designers such as Gautam Banerjee, Rajiv Popley and Riyaz Gangji have introduced lucrative designs in fashion accessories and precious metals this Valentine’s Day.

Jewellery sales in India have steadily declined over the last 3-4 years due to a spike in customs duty to 10 per cent till last year and 12.5 per cent thereafter. Apart from that, the government has levied customs of 2.5 per cent and 7.5 per cent on rough and polished diamond, respectively. Worsening the scenario, the government extended customs duty on coloured gemstones and also levied 18 per cent goods and services tax (GST) on hallmarking and certification of jewellery.