Surge In Prices Hits Gold Jewellery Sale In 2023’s First Wedding Season, Retail News, ET Retail

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The surging prices of gold in this year’s first wedding season have muted the sales of jewellery in the city market. Buyers are sticking to their budget and cutting down on the volume of gold purchased for the occasion. The price of the yellow metal, meanwhile in the Kolkata market, hovered around Rs 55,700 per 10 gm on Monday.

Gold prices in the international market have seen a rally in the past couple of months. Gold price (22 karat) in Kolkata market increased from Rs 52,680 per 10 gm on December 16, 2022 to Rs 55,700 on Monday. While the city jewellers were hopeful of bullish sales this year given a more- than-expected response from buyers during Dhanteras and Diwali, gold prices increased steadily after that. On October 20, last year the gold price in the city market (22 karat) was Rs 48,885 per 10 gm.

“Increasing prices are a concern for the buyers who are procuring jewellery now. It is difficult for them to extend the budget by a large extent and they are likely to stick to their budget and lower the volume of purchase,” said Shubadip Roy of Bengal Jewellery. “This rising price can impact sales of a few jewellers in the city,” he said.

City jewellery stores have started witnessing more walk-ins after Poush month was over. While Poush is not considered an auspicious month for weddings, the wedding season starts again from Magh. “We are seeing a lot of footfall. Although prices are high, people realised that there is no substitute for gold as it is a safe option for the investors. The younger generation understands that investing in gold is never wasted,” said Annargha Chowdhury of Anjali Jewellers.

According to Suvankar Sen, MD & CEO of Senco Gold & Diamonds, despite high prices, gold is a hedge against inflation and recession. “Weddings are once-in-a-lifetime events. Customers buying wedding jewellery primarily focus more on design and making charges,” he said.

Ratan Lal Agarwal, director of R R Agarwal Jewellers, felt that customers who have planned weddings some time in the future, tend to buy gold and silver when the prices spiral upwards. “Those who are doing a last-minute purchase don’t have much scope to expand their budget, but those who have weddings planned some time later during the year, will book jewellery at these rates to offset any future hike in the price,” he said.

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