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Time of India
24-07-2025
- Business
- Time of India
Gold crosses Rs 1 lakh mark! But jewellers worry over sluggish sales - Here's why
Gold prices crossed the Rs 1 lakh per 10 grams mark on Wednesday, dampening sentiment among jewellers just ahead of the festive season. This is the first time in nearly two months that prices have breached this psychological barrier. The yellow metal has gained almost 2% this week, rising from Rs 98,791 on Monday to Rs 1,00,502 per 10 grams on Wednesday. Including the 3% GST, the effective consumer price now stands at Rs 1,03,507 per 10 grams. Jewellers fear the price surge may further dent demand during the upcoming high-consumption festive period starting with Raksha Bandhan. 'China is heavily buying gold. The Central Banks across the globe too are buying gold. Big investors are also purchasing gold. All these factors are driving the gold prices,' Surendra Mehta, national secretary of the India Bullion & Jewellers Association (IBJA), the apex industry body, told ET. The previous instance of gold reaching Rs 1 lakh per 10 gm occurred on April 22, following US-China trade tensions when the US implemented higher tariffs on China. Silver prices increased significantly, reaching Rs 1,15,500 per kg on Wednesday from Rs 1,11,000 per kg on Tuesday, representing a Rs 4,500 per kg increase in one day. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Filipinos should get this large benefit! Read More Undo Financial analysts attribute the rise in precious metals to a weakening dollar index and uncertainties surrounding US trade tariffs, which encourage safe-haven investments. The Indian currency experienced pressure after Nato's warning about secondary sanctions on Russian oil imports, contributing to increased local gold and silver prices. As India imports these precious metals, currency depreciation automatically affects prices. Suvankar Sen, managing director of jewellery chain Senco Gold, indicated that consumers are now choosing lightweight gold jewellery to accommodate their budgets. 'Volume-wise the drop will be 15%. If the price rise continues, then demand for 18 karat, 14 karat and 9 karat gold jewellery will increase,' he told the outlet. With the festive season starting next month from Raksha Bandhan and continuing through Diwali, gold demand is typically strong. However, this year, persistently high prices are dampening sentiment. According to ET, Dinesh Taluja, CFO of Reliance Retail, said the company's jewellery business has seen higher billing amounts due to rising gold prices, but the number of transactions has declined. 'The business is on steady growth, but obviously there is an impact on the significant increase in gold prices. In volume terms, the demand for gold has gone down,' he noted. The IBJA representative suggested that Raksha Bandhan jewellery sales will likely suffer as consumers resist the Rs 1 lakh price point. Faced with high prices, consumers are holding back on non-essential gold purchases and turning to more affordable alternatives like lightweight, lower-karat, silver, or studded jewellery. However, investment-driven buying continues, with customers showing interest in gold coins, bars, and plain chains, which carry lower making charges and are considered better value for long-term holding. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
23-07-2025
- Business
- Economic Times
Gold price crosses Rs 1 lakh per 10 gm, dampens festive jewellery demand
Gold touched the Rs 1 lakh per 10 gm mark on Wednesday dampening the mood among jewellers who now fear a further dent in sales ahead of the crucial festive season. The prices have crossed this threshold after almost two months. ADVERTISEMENT The yellow metal has gained nearly 2% this week — climbing from Rs 98,791 per 10 gm on Monday to Rs 1,00,502 per 10 gm on Wednesday at the retail end. With a 3% goods & services tax, net consumer price is now Rs 1,03,507 per 10 gm. 'China is heavily buying gold. The Central Banks across the globe too are buying gold. Big investors are also purchasing gold. All these factors are driving the gold prices,' said Surendra Mehta, national secretary of the India Bullion & Jewellers Association (IBJA), the apex industry body. Prices of gold had last touched Rs 1 lakh per 10 gm on April 22, following the trade war between the US and China with the former announcing higher tariffs on too shot up to Rs 1,15,500 per kg on Wednesday from Rs 1,11,000 per kg on Tuesday, a surge of Rs 4,500 per kg in a single day. The precious metals are being boosted by lower dollar index and the US trade tariff uncertainty supporting safe-haven buying, analysts Indian rupee came under pressure following NATO's warning of secondary sanctions on Russian oil imports leading to an additional increase in gold and silver prices locally. India imports both the precious metals and if the rupee comes under pressure then prices go up automatically. ADVERTISEMENT Suvankar Sen, managing director of jewellery chain Senco Gold, said the price rise is forcing consumers to buy lightweight gold jewellery within their budget. 'Volume-wise the drop will be 15%. If the price rise continues, then demand for 18 karat, 14 karat and 9 karat gold jewellery will increase,' he said. The festive season, which starts next month with Raksha Bandhan and continues till Diwali in October, is one of the biggest consumption periods of gold, apart from the wedding season in winter. ADVERTISEMENT India's largest retailer Reliance Retail chief financial officer Dinesh Taluja told analysts last week that the substantial increase in gold prices may have increased bill values (for its jewellery business), but the number of bills have come down. 'The business is on steady growth, but obviously there is an impact on the significant increase in gold prices. In volume terms, the demand for gold has gone down,' he IBJA official said that jewellery sales in Raksha Bandhan will not be good as consumers are not able to accept the price of Rs 1 lakh. In the gold hub Zaveri Bazaar in Mumbai, footfalls have fallen significantly. 'Unless the price settles near Rs 93,000 - Rs 94,000 per 10 gm, demand will not see an uptick,' Mehta said. ADVERTISEMENT Persistently high gold prices have suppressed demand, prompting consumers to defer non-essential purchases and opt for more affordable alternatives such as lightweight, lower-karat, silver or studded Chacko, research head for India at World Gold Council, said the trend of exchanging old jewellery to manage costs continued to gain traction as per market reports. ADVERTISEMENT However, investment-oriented buying may continue, with a growing preference for gold bars, coins and plain gold chains (seen as quasi-investments), which are favoured for their lower fabrication charges. 'As per anecdotal reports, demand has been concentrated in lower-grammage coins, particularly those weighing less than 10gm,' Chacko said. (You can now subscribe to our ETMarkets WhatsApp channel)
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Business Standard
21-07-2025
- Business
- Business Standard
Hallmarking for 9 carat gold gets green light: What it means for consumers
The government has approved hallmarking standards for 9 carat gold, making it officially part of the Bureau of Indian Standards' (BIS) hallmarking system. The notification was issued by the Ministry of Consumer Affairs, and the rule will take effect from this month, June 2025. What's happening: According to BIS, 9K gold must have a minimum fineness of 375 parts per thousand, and will now be subject to the same regulations as other gold categories. Jewellers and hallmarking centres must comply starting July 2025. Why it matters: Gold prices have surged to record highs in India, crossing ₹99,000 per 10 grams and briefly hitting ₹1,00,484 on the MCX. This has led to many consumers being priced out of the market. By making 9 carat gold (which costs roughly ₹38,110 per 10 grams, including GST) part of the hallmarking system, the government aims to: The background: Until now, hallmarking in India was permitted only for 24K, 23K, 22K, 20K, 18K, and 14K gold. The BIS hallmark certifies the gold's purity (measured in parts per thousand) and ensures consumer protection under the BIS Act, 2016. The absence of 9 carat gold from the list had limited jewellers' ability to sell lower-purity, affordable options with government-backed certification. That gap has now been filled. This development comes after a steep 60 per cent drop in gold sales by volume in June, the sharpest decline since the Covid-19 pandemic. Why have gold prices surged? Gold prices are surging due to a combination of global and domestic factors. Investors are turning to gold as a safe-haven asset amid heightened geopolitical tensions, particularly between the US and China, and growing political instability. A significant drop of over 4 per cent in the US Dollar Index this year has further boosted gold's appeal on the global stage. Central banks, especially in Asia, are increasing their gold reserves to diversify away from the US dollar, driven in part by concerns over political risks such as the freezing of Russian central bank assets. Additionally, the US Federal Reserve's interest rate cuts have made gold, which does not yield income, relatively more attractive. In India, domestic demand remains strong due to cultural and seasonal factors—key festivals in India traditionally see a rise in gold purchases, keeping demand high regardless of price trends. Industry speaks: Officials and industry leaders have welcomed the move as overdue and timely. 'We had been urging the government to introduce hallmarking of 9 carat gold for over a year,' said Surendra Mehta, national secretary, India Bullion & Jewellers Association (IBJA), speaking to The Economic Times. 'This will spur demand, especially in rural areas.' Suvankar Sen, MD & CEO of Senco Gold, added, 'It's a great initiative to make gold jewellery more accessible amid high prices. Modern designs come out smartly in 9K gold, and this move also supports innovation and exports.' The bigger picture: India is one of the world's largest consumers of gold, using 800–850 tonnes annually. Global factors, including inflation and geopolitical tensions like the Russia-Ukraine war, have driven up gold prices by over 25 per cent in the past year. Amid this, jewellers are increasingly turning to lower-carat jewellery to reduce production costs and attract budget-sensitive buyers, and hallmarked 9K jewellery could unlock new export opportunities, especially for lightweight, design-centric collections. What to watch out for: The new standard takes effect from July 2025, so not all jewellers may immediately offer hallmark-certified 9K gold. Consumers should look for the BIS hallmark and the fineness mark (375) when buying 9 carat jewellery. Gold watches and pens are now excluded from the BIS artefact definition; consumers should be aware that these items may not be hallmarked even if ma
Time of India
19-07-2025
- Business
- Time of India
Buying gold? Now even 9 karat gold will be hallmarked; here's what you should know
The government officially notified hallmarking standards for 9 karat gold, in a move aimed at reviving consumer interest in gold jewellery amid record-high prices. Until now, the Bureau of Indian Standards (BIS) had permitted hallmarking only for gold in 24, 23, 22, 20, 18, and 14 karats. The ministry of consumer affairs issued the notification on Friday, at a time when gold sales by volume have plunged by 60% in June, marking the steepest drop since the Covid-19 pandemic. 'We had been urging the government to introduce hallmarking of 9 karat gold for over a year. The government's decision will spur movement of gold in the rural areas where the budget for gold jewellery purchase is much lower than urban,' Surendra Mehta, national secretary of the India Bullion & Jewellers Association (IBJA) told ET. He added that even in urban centres, younger consumers are likely to find 9 karat jewellery more accessible. Estimated to cost Rs 37,000 per 10 grams, 9 karat gold is significantly more affordable than 24 karat gold, which was priced at Rs 97,828 per 10 grams on Friday. Including the 3% Goods and Services Tax (GST), retail prices for 9 karat gold come to around Rs 38,110 per 10 grams, while higher karatages cross the Rs 1 lakh mark. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like A fascinating fantasy game! Sea of Conquest Play Now Undo The move received support from jewellers, especially ahead of the crucial festive season. Demand for gold jewellery traditionally usually surges from Rakshabandhan in August through Diwali, followed by the winter wedding season starting in November. India consumes 800-850 tonnes of gold annually, with rural India accounting for nearly 60% of this demand, according to IBJA. Gold prices have surged more than 25% over the past year, largely fuelled by global uncertainties following the Russia-Ukraine conflict. As a result, many large jewellers have already started offering 9 karat options to attract cost-conscious customers. Industry experts believe hallmarking of 9 karat jewellery will ease jewellers' working capital pressures, which have risen sharply due to the price hike. 'Many gold jewellery units have started shifting from manufacturing high karatage jewellery to 14 karat and 9 karat jewellery. The hallmarking for 9 karat jewellery will further boost this shift,' said a senior gold trade analyst, cited by ET. Suvankar Sen, MD & CEO of Senco Gold, noted that lower karat gold is also opening up design possibilities. Sen said that modern designs come out smartly in 9 karat gold, allowing for innovation. He added that hallmarking will not only enhance customer trust but also strengthen India's gold jewellery export potential. Mehta added that the BIS will require about a month to put in place the necessary formalities across hallmarking centres nationwide to accommodate 9 karat gold. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
18-07-2025
- Business
- Time of India
Govt brings 9 karat gold under mandatory hallmarking
The Bureau of Indian Standards (BIS) on Friday announced the inclusion of 9 Karat gold under the list of mandatory hallmarking categories, effective July 2025. The standard defines specifications for fineness and marking of gold jewellery and artefacts. Explore courses from Top Institutes in Select a Course Category Cybersecurity Others Product Management Technology Project Management MCA Data Analytics Management Public Policy Artificial Intelligence MBA Degree Design Thinking CXO Leadership Finance Data Science Data Science others healthcare Healthcare PGDM Digital Marketing Operations Management Skills you'll gain: Duration: 10 Months MIT xPRO CERT-MIT xPRO PGC in Cybersecurity Starts on undefined Get Details With this inclusion, the list of hallmarking grades now comprises: 24KF, 24KS, 23K, 22K, 20K, 18K, 14K and now 9K (with minimum fineness of 375 parts per thousand). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo Jewellers and hallmarking centres are required to comply with this addition under the BIS regulations, said All India Gem & Jewellery Domestic Council in a post on X. '9 Karat Gold (375 ppt) is now officially under mandatory hallmarking as per BIS Amendment No. 2 All jewellers & hallmarking centres must comply,' the council said. Live Events As per the amendment, 9 Karat gold, earlier not included in the mandatory hallmarking system, will now be brought under the same regulatory framework that ensures consumer transparency in purity standards. Welcoming the move, Suvankar Sen, MD & CEO, Senco Gold Ltd. called 9 kt hallmarking a great initiative by Govt. "9 kt hallmarking is a great initiative by Govt to make the diamond and gold jewellery more affordable and easier for the consumer to buy Jewleley in the high gold price. The modern Deisgns can come out smartly in the 9 kt and companies can continue to innovate with Deisgns and styles due to this imitative. It will also boost exports for future,' Sen said. The revised BIS standard also updates definitions and exclusions. Gold watches and pens have been excluded from the definition of artefacts. A gold coin under this specification is defined as a flat sheet of 24KF or 24KS gold produced only by mints or refineries and having no legal tender value. Hallmarking, governed by the BIS Act, 2016, certifies the proportionate content of precious metal in jewellery and artefacts. Hallmarking grades Sl No. Grade/Designations Declared Minimum Fineness in ppt Purity in Karat (K) ( Approximate ) (1) (2) (3) (4) i) 24 KF 999 — ii) 24 KS 995 — iii) 23 K 958 23 iv) 22 K 916 22 v) 20 K 833 20 vi) 18 K 750 18 vii) 14 K 585 14 viii) 9 K 375 9
