Gold price
Gold Demand Fall: The first phase of the festive season, ie Raksha Bandhan to Onam, has seen a huge decrease in gold demand this year. According to the India Bullion and Jewelers Association (IBJA), the demand for gold declined by 28% to 50 tonnes as compared to last year. People are not buying too much gold this time. Come, let’s understand the reason behind this.
In an ET report, jewelers said that gold prices have increased by 49% in the last three years, especially after Kovid, which spoiled the customers’ sentiment. Many people are making distance from jewelery, and those who are buying are mostly taking low -carat and light weight jewelry.
On Monday, the price of 10 grams of gold in the retail market was Rs 1,07,321. Customers have to pay Rs 1,10,540 by adding 3% GST. In the last Onam, this price was Rs 74,500 including GST. IBJA National Secretary Surendra Mehta said that high prices are reducing demand. Customers are hesitant to purchase due to frequent fluctuations in prices. He told that the average weight of light weight jewelery was earlier 7-12 grams, which has now come down to 7-10 grams.
Peak time of sales in festive season
The first phase of the festive season, ie Navratri and Diwali, is the biggest time for the sale of gold. After this, the season of weddings also increases sales. The time of Shraddha is currently going on, when the people of Hindi belt avoid great shopping. However, people often book gold for Navratri and Diwali. Jewelers say that this time this demand is very weak.
Demand for 22 carat gold decreased
Kalyan Jewelers Executive Director Ramesh Kalyanraman said that people in South India still like traditional 22 carat jewels, but are buying light weight jewelry according to the budget. 14 and 9 carat jewels are also pleasing to customers. Samen Bhoumik, MD of Carelane, said that the demand for heavy design jewelery is increasing in 14 carats. The special thing is that customers are not hesitant to take 9 carat ornaments. Light weight jewelery sales have increased by 2.5 times than last year, which is more than traditional carat jewelery.
Although the demand for jewelery has come down, the demand for investment in gold still remains. Muthoot Exim CEO Keur Shah said that 2-5 grams of coins and 5-10 grams of jewelery demand in the middle and lower-incomplete groups. He said that this trend is the same as last year, but if prices suddenly rise, customers sometimes buy less gram coins, especially when their shopping deadline is near.