Gold prices fell by nearly 4 percent in a month to Rs. 1.53 lakh to Rs. 1.47 lakh per 10 grams has come down. Due to which some people are shopping before the main season of festivals and weddings. There is a reason for this too. Consumers want to take advantage of falling prices and are also cautious about overall costs. According to industry officials, there is a growing trend of exchanging old gold for lightweight designs, studded pieces and new jewellery.
Gold prices are expected to fluctuate
Darshan Desai, CEO of Aspect Bullion & Refinery, said in an ET report that the recent decline has spurred some buying in India, although consumers are wary of prices. He said volatility on prices is expected to continue due to US economic data, comments from the Federal Reserve and currency swings, although festive shopping may provide some support to the domestic bullion market. Jewelery in all price ranges is in demand. CaratLane managing director Sauman Bhowmik said in an ET report that while consumers are making more conscious decisions about their spending, they are also interested in both affordable and premium jewellery. According to him, the long season of festivals and weddings as well as the continued demand for diamonds and everyday wear are making the market environment positive.
High price stability
Mangesh Chauhan, managing director of Sky Gold and Diamonds, said in a media report that demand is expected to be good during festivals and weddings. This is being supported by strong B2B orders from wholesalers and store expansion by jewelery retailers. The company makes jewelery for big brands like Tanishq and Malabar Gold and Diamonds. He said that despite high prices, their stability in recent months has given consumers confidence in planning their purchases. However, buyers are looking for more affordable options without compromising on design. Chouhan said lighter weight, less carat and design-oriented jewelery is preferred, while customers can buy new designs within their budget by exchanging old gold for new jewellery. Studded jewelery is also growing in popularity among young buyers, due to which manufacturers are increasing their range of products in this category.
Buyers are looking at the budget, not the count.
Supriya Kataria, founder of Kumari Fine Jewellery, said in an ET report that the rising prices are encouraging consumers to shop more wisely instead of deterring them from buying jewellery. Buyers are increasingly interested in lightweight jewelry, low-carat options, and versatile designs that strike a balance between beauty and affordability. He said consumers are closely comparing gold prices, charges, promotional offers and exchange values and brand trust is playing an important role in the purchase decision.
Demand is expected to remain
This change will be more pronounced in non-essential purchases, while there will be demand during weddings, festivals and special family occasions. Swaps for new jewelry are becoming an important way to manage shopping costs, allowing families to use the value of their existing jewelry to purchase new ones. With festivals and weddings coming up in the coming weeks, industry officials expect demand to remain strong, though purchase decisions may take longer as consumers try to balance emotional spending and budget constraints. Now instead of buying more gold, the emphasis is on getting good design and value for every rupee spent.
