India is the world’s largest consumer of gold jewelry, with huge gains at about this time of year due to festivals such as Ugadi and Gudi Padwa and heading to Akshaya Tritiya on April 30. Hindus see buying yellow metal on Akshaya Tritiya as a symbol of prosperity.
However, this year, the price of gold is approaching ₹10,000 per 10 grams. On April 17, spot prices soared to an all-time high ₹24 carats and ₹For re-texture issues, 22 carats per 10 grams per 10 grams of 89,200 carats and dollar weakened.
High gold prices often lead customers to exchange old gold instead of buying new gold to preserve wealth.
“The old gold exchanges rose 30-35% compared to two years ago,” said Suvankar Sen, managing director and CEO of Senco Gold Ltd.
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To be sure, the price of 24-carat gold has risen by 23.84% over the past year and 38% over the past two years.
At Tanishq, a jewelry brand owned by Titan Co. Ltd, the rise in gold prices has led to lower demand for lower prices, resulting in a growth in unit buyers. By contrast, the March quarterly update released last week said in the March update released last week that demand for higher price bands continued, resulting in higher double-digit fare growth.
Which company, The domestic jewelry business of 500 Tanishq stores across the country has increased by 24% year-on-year due to significant rise in gold prices. It has not announced its March quarterly earnings.
Titans’ shares have fallen 5.76% since April 18, 2024.
Beware of customers
Despite customers’ vigilance, retailers continue to push for quotes ahead of the April 30 festival.
“We are coming up with new collectibles and lightweight jewelry to suit our clients’ budgets. We offer discounts on gold rates and charge fees,” Sen added.
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Senco Gold also offers a 0% exchange deduction, even for gold purchased from other jewelers.
Senco Gold’s share price has fallen 24% over the past year.
“This year, sentiment is still strong and we’re seeing customers be more cautious and planning when it comes to buying,” said Arun Narayan, vice president of marketing and retail at Tanishq.
“So our approach is to respond with meaningful solutions, such as our Rivaah Golden Advantage purchase plan, the best gold rate, and our San Francisco trading plan, which mitigate the impact of rising gold rates,” he said.
Tanishq also introduces a large number of lightweight traditional and modern designs.
Consumers become more sensitive due to rising gold prices, Ahammed ahammed, chairman of MALABAR Group. “Buying gold on auspicious days, such as Gudi Padwa, Baisakhi and Akshaya Tritiya, and wedding seasons, has raised the mood of consumers. As a result, a stroll to our store or footsteps is healthy.”
Malabar Gold & Diamonds offers customers up to 25% off, 25% off on flat precious stones and uncut diamond jewelry, and 25% off on diamond value.
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“Our Premium Booking Facility witnessed an overwhelming response as it allows customers to book jewelry with a minimum down payment of 10% of the total value and pay the rest based on the booked interest rate or the ready-made market rate, otherwise lower.”
Such offers help buffer the impact of future gatherings on gold prices.
But even if the preferences and budget for gold jewelry may develop, the desire for exquisitely crafted jewelry will remain strong, said Sandeep Kohli, CEO of Indriya-Aditya Birla Jewelry, operating 21 stores.
“We offer a repurchase policy and promotion. The gold exchange policy that our clients own is very attractive because under this policy, clients receive 100% of the value of the metal.”
Disturbance at the local level
Local jewelers say high prices are driving more consumers to exchange and even sell their old gold. “People are exchanging gold, some people even sell it to gold because it’s too high, and they expect the price to fall again, and I think that’s unlikely under the tariffs and other economic conditions of President Donald Trump.”
Anand said more and more consumers are returning to the store to recreate fresh pieces of old gold, accounting for 30% of sales from March to mid-April with a year ago.
Reconstraints account for 10-12% of the store’s daily business. Consumers also sell old gold, with 15% of sales coming from there. New decoration sales are currently around 55% over the past two years, with an average of 80%.
