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New Indian Express
17-07-2025
- Business
- New Indian Express
Surge in gold prices triggers chain reaction, goldsmiths worst affected
COIMBATORE: Jewellery sales in Coimbatore, one of India's largest gold manufacturing hubs, have dropped by 60% this year, with only 40% of usual business taking place as record-high gold prices push buyers to hold back on purchase of jewellery. The slowdown has left goldsmiths struggling to make ends meet, with many facing prolonged periods without work after losing nearly 70% of their usual workload. While footfall at retail counters remains steady, actual sales have dipped sharply, forcing jewellers to run at reduced capacity, say industry leaders. Gold prices in India have surged by over 27% in just six months, reaching an all-time high in June and continuing to stay elevated through July. Between January 1 and July 16 this year, the price of gold rose by Rs 15,600 per sovereign (22K gold), a 27.27% increase. This follows a 21.67% rise in 2024, when prices climbed by Rs 10,184 per sovereign (22K gold) over the year. The pace of the current spike, experts say, is unprecedented. "Even before people could get used to Rs 60,000 per sovereign, the price crossed Rs 70,000. That kind of rapid spike shrinks the market in a very real way," said B Sabarinath, president of the Tamil Nadu Jewellers Federation. He noted that business is currently running at just 40% of last year's levels. "Earlier, people purchased gold on auspicious days. Now, even a minor fall in rates becomes an occasion to buy," he added. On peak days such Akshaya Tritiya, sales volume dropped to 70% when compared to last year, even though the overall revenue remained steady due to the higher price. Now, many retailers are stuck with unsold stock and tighter margins. This slowdown has triggered a chain reaction across the gold sector. "When retailers don't get sales, they reduce orders. If we don't have orders, we don't send work to the goldsmiths," said Muthu Venkatraman, president of the Coimbatore Gold Manufacturers Association.
The Hindu
30-04-2025
- Business
- The Hindu
Steady footfall, cautious buying mark Akshaya Tritiya sales in Chennai
Jewellery showrooms in Chennai witnessed steady footfall on Wednesday, which marked Akshaya Tritiya day. While sales picked towards evening hours, retailers noted that customers purchased nearly 20-30% less gold, compared to last year. The fact that gold prices that dropped mildly on Wednesday compared to last week, meant customers still came in, though in fewer numbers. One gram of 22 carat gold was sold for ₹8,980- and one-gram silver for ₹111. Soaring gold prices had prompted many customers to opt for token purchases or light weight jewellery to suit their budget. Concerns over further hike in cost of precious metals also influenced buying decisions, said jewellers. Cost of 24 carat gold had surged by 35.3% in the past year from ₹73,200 per 10 gram in May 2024 to ₹99,000 on Wednesday. Sangeetha Saravanan, a Kilpauk resident, was one of the early customers to jewellery stores on Wednesday morning. 'I visited a jewellery store at 6.50 a.m. to make the purchase during the auspicious hours. I did not want to break the annual tradition and exchanged old, damaged jewels to buy 18 carat jewellery within my budget. The discounts on offer today, helped in saving money,' she said. There has been a shift in consumers' purchase behaviour this year with residents making more cautious choices. of Mogappair said, 'I did not want to miss on the traditional investment and festive purchase. Instead of the usual 8-10 gram purchase, I restricted to four gram ornament this year.' Ahmed, advisor, Tamil Nadu Jewellers Federation, noted that youngsters preferred light-weight designs to match their daily wear. Gold bangles with rhodium weighing eight gram were a popular choice apart from gold coins. This year, gold coins sales went up by 20% compared to last year. N. Anantha Padmanabhan, former chairman, All India Gems and Jewellery Council, said light weight jewellery weighing up to 20 gm contributed to nearly 60% of the day's sale apart from silver articles. Prices may stabilise in a few months.
