Ray of Hope: The larger players in this space say this is just a temporary phenomenon and the festival season will be strong. |Photo source: Akhila Easwaran
The soaring gold price has greatly influenced consumer behavior, especially among middle-class families in Tamil Nadu, where the traditions and cultural celebrations of gold investment, especially weddings, are deeply intertwined. Many take a cautious approach as families prepare for upcoming weddings in May, June and July.
Jewelry, on the other hand, are offering lucrative quotes such as lighter jewellery and the full value of old jewellery, among other offers. On Friday, the gold price was Rs 9,765 (24 kt) per gram, meaning the monarch (8 grams) is Rs 78,120.
V. Shantha’s daughter will be married next month, saying: “My daughter was engaged last year, when the price of gold was about Rs 6,800 per sovereign. We promised to give her 21 sovereigns. But now, with the price rising, we find it difficult to achieve it.” She said it was not a dowry, but a gift from her promised daughter.
Ms Shantha added: “We have now informed our daughter that we will deposit the money into her account.”
K. Priyadarshini, receptionist at a private company that is scheduled to get married in June, shared that her father discussed wedding jewelry with her, and she suggested getting cash instead of gold due to price fluctuations. She noted that another friend of hers is going to get married this year and he is also facing the problem of managing money to buy gold. As the price of gold metal continues to rise, more and more consumers are opting for monthly installment plans offered by jewelers in all of the state to buy gold.
Although consumers remain cautious and adopt a waiting-to-see approach, jewelers assert that despite rising prices, gold has always proven to be a reliable investment and a safe choice.
Temporary phenomenon
The bigger players in the space say it’s just a temporary phenomenon and the festive season will be strong. However, smaller players say that intermediate and low-income groups will only buy if needed.
“Whenever interest rates are to be raised…the consumer will be resistant and consumption will drop, but with the Akshaya tritiya season, consumption will increase. In many cases, gold has been a lifeguard: it is a transparent commodity. You can buy it at any time and convert it to cash. He noted that the focus now is more on lightweight jewelry, he said: “When I say lightweight, it is also possible to make a golden item that can be made for two sovereigns with 1-1.5 sovereigns.” ”
High history
Sachin Jain, regional CEO of the World Gold Council of India, said that due to the historical highs, there are concerns about lower demand, especially in the middle class sector, prevalent. “But, those types of buyers are buying lighter gold jewelry that makes them affordable for their desire to own and wear yellow metals,” he added.
Kalyan Jewelers offers exchange offers that allows customers to bring their old gold jewelry into new designs. Ramesh Kalyanaraman, executive director of Kalyan Jewelers, shared his thoughts on the upcoming Akshaya Tritiya, saying: “Customers can ensure interest rate protection through our booking plan, paying only a quarter of the purchase amount of the booking.
“Customers are now more aware of gold purity options and are open to 14KT and 18KT jewelry at affordable prices, durability and stylish,” said Shyamala Ramanan, business director at Tanishq.
Despite the rising sentiment, jewelers are optimistic that sales during the Akshaya Tritiya will be good. Mr Jain said retailers have already reserved and expected bumper purchases this year.
publishing – April 18, 2025 11:32 pm ist
