India, the world’s largest consumer of gold jewelery, is a big leap witness in the purchase of gold around this time of the year, which reaches Akshay Tritiya on 30 April, due to festivals like Yugadi and Gudi Padwa. Hindu letters see yellow metal on tritiya as a symbol of prosperity.
However, this year, gold prices have reached close to the psychological sign. 1 lakh per 10 grams. On 17 April, Spot prices reached an all -time high level 97,310 per 10G for 24 carats and 89,200 per 10g for renewed geopolitical concerns and 22 carats on a weak US dollar.
In high gold prices, customers often exchange old gold instead of buying new to preserve money.
“Old Gold Exchange 30–35% vs. has increased two years ago,” Suvankar Sen said, Managing Director and Chief Executive Officer, Senco Gold Limited, who operates 171 stores across the country.
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To ensure this, prices for 24-carat gold have been 23.84% in the last one year and 38% rallies in the last two years.
In the jewelery brand Tanishk, owned by Titan Company Limited, gold prices increased, resulting in a sluggish consumer demand at low-price points, leading to a single-score buyer growth. In contrast, the demand for high value bands maintained, resulting in an increase in high double digits in ticket sizes, said in the March quarter update released last week.
Company, which The country operates 500 Tanishq stores across the country, reported to increase its domestic jewelery business 24% year-on-year due to a significant increase in gold prices. It has not announced its March quarter earnings yet.
Titan shares at BSE from 18 April 2024 are 5.76% below.
Careful customer
Although customers are careful, retailers carried forward the proposals before the April 30 celebrations.
Sen said, “We are bringing new collections and light jewelery to fit the budget of customers. We are giving up on gold rates and alleging,” Sen said.
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Senco Gold is also offering a 0% cut on the exchange, even for gold purchased from other jewelers.
Senco Gold shares are 24% below compared to last year.
“This year, Bhavna remains strong, while we are making more careful and planning to customers,” said Arun Narayan, Vice President, Marketing and Retail, Tanishq, Titan.
“Our approach, therefore, is to respond with meaningful solutions such as our Rewa Golden Advantage Purchase Scheme, Best Gold Rate and our old-gold exchange program, which has reduced the effects of rising gold rates,” he said.
TanishqAlso, a large collection of light traditional and contemporary designs is introduced.
Consumers have become more intelligent due to the upward movement in gold prices, MP MP Ahmad agreed to the President of Malabar Group. “The auspicious day to buy gold such as Gudi Padwa, Baisakhi, and Akshay Tritia, and wedding season has promoted the spirit of the consumer. As a result, walk-in or footfalls in our stores have been healthy.”
Malabar is offering up to 25% discount on allegations of making gold and diamonds customers, 25% discount on valuable stones and jewelery without diamonds and up to 25% discount on diamonds.
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“Our advanced booking facility is looking at the excessive response, as it allows customers to book jewelery with a minimum down payment of 10% of the total value and pays the rest based on the booked rate or prevailing market rate – whichever is low,” Ahmed said.
Such offers help reduce the effects of future rally in gold prices.
However, the desire for excellently designed jewelery will be strong, even though preferences and budgets for gold jewelery can develop, Sandeep Kohli, CEO, Indriya-Aditya Birla said. JeweleryWhich operates 21 stores.
He said, “We offer buyback policies and promotion. Our customer -owned Gold Exchange Policy is very attractive, because under this policy, customers get 100% of the metal value,” he said.
Local crisis
Local jewelers said that high prices are advancing more consumers to exchange or sell their old gold. “People are exchanging gold, and some are selling it because the price is very high, and they expect the fall in prices to buy again, which I think there is no possibility among the US President. Donald Trump’s tariff Hike and other economic conditions, “Sarathak Anand, Director, Anami Jewelers, a store in Lajpat Nagar Bazar in Delhi said.
Anand said that more consumers returned to shops to remake fresh pieces from old gold, giving 30% of the store sales between March and mid -April a year ago.
Remike for about 10–12% of the store’s daily business. Consumers also sell old gold, of which 15% sales are coming from there. Sale of new jewelery is about 55% on average 80% versus about 55% in the last two years when gold prices were low.
