AHMEDABAD: Even though Navratri brought in the much-needed optimism for jewellery sale, the volume of gold sales is just about average. According to data by Ahmedabad Air Cargo Complex, merely 2.28 metric tonne (MT) gold was imported in Gujarat in October this year. Increased exchange of old gold against new jewellery is one of the key reasons for decline in gold imports.
The price of gold settled at Rs 52,600 per 10g on Tuesday.
Jigar Soni, president, Jewellers’ Association of Ahmedabad (JAA), said, “High and volatile price of gold was a major deterrent for gold purchases since the pandemic. While the demand did revive, at least 50% of purchases are made by exchanging old gold in return for new jewellery. This is bound to impact jewellery volumes.”
Another factor is the changing buying behaviour of people due to the pandemic and with high prices of gold. Jewellers say that there is restricted buying and more customers opt for small-ticket purchases. “Gold price has a major impact on sales and also the designs. People seek more value in what they buy and thus restrict themselves to small-ticket purchases such as that of rings and earrings,” said Shrey Mehta, director, Pooja Diamonds.
“The drastic increase in gold price compelled with the pandemic forced people to change their buying behaviour to a great extent. Even though people do have dispensable income at hand, given that the guest list is now limited, they’re mindful in spending and therefore, minimalistic designs are in great demand,” said Jaydeep Bharatji, managing director, Bharatji Jewellers, based in Ahmedabad.
“Classic designs will rule sales this festive and wedding season because people have begun preferring something that gives them more value and is timeless than something that is trending,” said Revathi Kant, chief design officer, Titan Company Limited.