Gold's high prices have come as a godsend for diamond jewellery sector as more and more people are now opting for the sparklers.

According to market analysts, leading jewellery players like Gitanjali group are gaining from the high prices of gold as they are selling more diamond studded jewellery now.

India's jewellery market is pegged at about Rs 90,000-1,00,000 crore of which plain gold jewellery and coins account for about 85%. The diamond market is valued at around Rs 12,000-15,000 crore. The diamond jewellery business is showing a growth of around 15% for the industry as compared to gold which has a zero to negligible growth rate.

While industry players say consumer buying sentiment is still positive even for gold, a new set of customers is now graduating from gold to diamond jewellery, which has a more aspirational value. With gold prices now breaching record highs, a number of potential fence-sitters are now making the move, consequently driving sales further.

Also to wean away more gold jewellery buyers from the lucrative wedding market, several diamond jewellery groups are coming up with diamond jewellery sets at lower entry points.

Leading diamond jewellery brand Orra has introduced gold exchange offers in certain markets like Delhi, Lucknow and Hyderabad. Under this scheme, customers can get their old gold jewellery and exchange it for diamond/studded jewellery.