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Indians' passion for gold fades as prices soar | Economy

According to Al Jazeera:

Gold prices in India’s domestic markets have risen 24% in the past 12 months, driven by conflicts in the Middle East and Ukraine, as well as huge bets by speculators in China, which has overtaken India as the world’s largest gold importer, the Financial Times reported.

Cultural significance

Despite gold's huge cultural importance in Hindu festivals and weddings, demand for gold jewellery in India fell 6% last year, according to the World Gold Council, compared with a 10% increase in China.

Sales volumes are expected to stagnate until March 2025, according to Crisil, an Indian analytics firm owned by Standard & Poor's, the newspaper reported.

Titan, the jewellery and fashion arm of India's Tata Sons, posted a fourth-quarter profit of 7.9 billion rupees ($95 million), below analysts' estimates, after demand was hit by higher bullion prices.

Despite India's “passion for gold,” the rising costs will have an impact on families ahead of weddings, said Surendra Mehta, national secretary of the Indian Bullion and Jewellers Association.

He added, “They have two options: either buy smaller quantities or buy smaller carats. I do not expect prices to decline soon.”

Indians are known to collect gold years before their weddings, with some gold saved over generations, but last-minute purchases are often unavoidable.

FILE PHOTO: A salesman arranges a gold necklace inside a gold jewellery showroom in the southern Indian city of Kochi April 16, 2012./File Photo
Gold prices rise to record levels (Reuters)

Reshaping Jewelry

The newspaper quoted the founder of the Wed Me Good website, Mehk Sagar Shahani, as saying that people are resorting to reshaping old jewelry as a result of the “crazy” rise in gold prices, as he described it.

“The rise in wedding costs since the Covid pandemic means that whatever money you spend, it will not be what it was before, and gold prices are not helping wedding planners,” said Vithika Agarwal, co-founder of high-end wedding planning company Divya.

Mhd Narayan

Bringing over 8 years of expertise in digital marketing, I serve as a news editor dedicated to delivering compelling and informative content. As a seasoned content creator, my goal is to produce engaging news articles that resonate with diverse audiences.

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