Jewelery sales lowest in 3 years
It rarely happens in India that there is a festival of Diwali and there is no purchase of gold. But this time the situation is different. The prices of gold have increased so much in the market that it has become difficult for the common man to purchase jewellery. While every year gold shops used to be crowded from Navratri to Diwali, this time the shopkeepers are sitting empty. According to India Bullion and Jewelers Association, this time the purchase of jewelery may decrease by 27% in the first three weeks of Diwali.
Inflation has had a bad impact on people's pockets. Now whoever is buying gold is preferring small coins or light jewelery instead of heavy jewellery. There has been an increase in the demand for gold coins of 2 to 5 grams. People are now buying pure gold coins or bars instead of spending on jewelery because there are no making charges in these. Experts say that this is a wise step, it leads to investment and also does not make the pocket too light.
This year the price of gold has reached approximately ₹ 1,14,000 per 10 grams. It is about 50% costlier than last year. Its effect is clearly visible, from Rakshabandhan to Onam, the demand for gold fell by 28% in the first round of purchases alone. Along with this, customers are now going towards 18 carat gold which is cheaper, whereas earlier mostly 22 carat gold was purchased.
However, big jewelers are still not disappointed about this season. According to market experts, there is a big reason behind this confidence of big retailers. Rahul Kalantri, Vice President (Commodities), Mehta Equities Limited, says that most of the big players have old stock (inventory) purchased at low cost. They will have 'inventory gain' due to the huge rise in gold prices,
Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, says that the company is very excited about this festive season. Before Diwali, the company is going to open 15 new showrooms and new design collections and promotional campaigns are also ready. He told that the prices of gold are continuously increasing, so customers are not waiting much longer. People are believing that the price may rise further, so they are thinking it better to buy now.
According to Kalyanaraman, the demand for 18 carat gold has now increased in the urban and North Indian markets. Earlier it was used only in diamond jewellery, but now it is being adopted in traditional designs also. At the same time, in South India, 22 carat gold still remains the first choice for jewellery.
On the other hand, Suvankar Sen, MD and CEO of Senco Gold has also expressed the same confidence. He says that the company expects strong sales in the second half of the financial year 2026 i.e. in the festive and wedding season. Although gold prices are high, they are still confident of sales growth of 18-20% this year.
