Kolkata: At a time when the demand of gold has zoomed to mind boggling levels, scaring away potential customers from the jewellery market, the CEO designate of Tanishq expects exchange of old jewellery will drive growth. “With the rise of gold rates, we believe that exchange is the best way to buy new jewellery. Recycling old jewellery, which has been sitting in lockers, will hopefully bring a lot of people back into the category who were shying away from purchases due to high rates,” Arun Narayan, told the Business Standard.
Narayan, who is currently the senior vice president of category, marketing and retail at Tanishq, is supposed to take charge as the CEO of the Tata firm from the first day of next year. He also observed that “recycling” of old gold contributed 4-5% in the overall jewellery business between April and September this year. Tanishq has struck a deal with cricketer Sachin Tendulkar to endorse the concept of jewellery exchange and is undertaking promotional activities till Diwali.
Surge in gold price in 2025
The price of gold, which used to surprise a lot of people till recently, have now started delivering shocks. The festive demand has pushed the price of gold to Rs 1.2 lakh for 10 gms, something quite unconceivable even a few weeks ago. Analysts have attributed the skyrocketing prices of the yellow metal to a weak dollar, Fed rate-cut expectations and global uncertainty arising out of trade-related issues and continuing geo-political conflicts. Moreover, central banks of various countries are buying gold aggressively, driving up demand across the world.
The real shocker for jewellery buyers is that gold prices have jumped by Rs 41,050 or 52% in 2025. The price of 10 gms of the metal was Rs 78,950 per 10 grams on December 31, 2024.
9 carat gold hallmarking introduced
In July this year, the government approved the IBJA (Indian Bullion and Jewellery Association) suggestion to notify hallmarking of nine karat gold jewellery. Jewellers said it might help to revive demand for gold jewellery when the surging prices of gold has forced customers to stay away from the outlets. The government responded to the drop in gold sales by volume by 60% in June and allowed the proposal in July. Earlier hallmarking was allowed only for jewellery of 24, 23, 22, 20, 18 and 14 carats.
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