The pandemic has brought a lot of constraints on movement, gathering of people and more, resulting in a massive change in spending habits as well. The whole economy is reeling in the aftermath of the lockdown.

All the same, while the pandemic has brought adversities, it has also brought in some remarkable opportunities. The gems and jewellery retail business for instance, despite record hike in gold prices has seen a marked increase in spending.

Jewellery consumption up as entertainment expenses are nil

Abhishek Chanda, Kalasha Fine Jewels, Hyderabad says, “In Hyderabad we have seen that IT sector jobs have increased and people have not had major expenses during lockdown. This has increased their disposable income considerably. Many such people want to invest their money in gold. We are getting more and more enquiries each day, with people from every walk of life, looking forward to invest their unspent money in gold.” People haven’t been able to take long luxurious vacations, as the whole summer was spent under the pandemic-induced lockdown. Major expenses like eating out, shopping in malls, visiting cinema multiplexes, amusement parks, et al have been brought to nil. And therefore a lot of  idle unspent money is finding its way towards investment in gems and jewellery.

At the same time, Gurmukh Singh (Ram), Neelkanth Jewellers, Bangalore feels, “We need to get such people to come and buy from our store, so that will take some effort – effective sales techniques and attractive schemes, backed up with good fresh inventory will clinch the deal.”

The demand hasn’t markedly improved – according to Vivek Agarwal, Mahalaxmi Jewellers, Jaipur. “Soon after lockdown demand was high, but not any longer, maybe many people have are spending on basic necessities alone.”

Big fat Indian wedding… no more

The extensive weddings along with large numbers of attendees are a strict no-no across India and therefore a lot of money which was earmarked for weddings is unused. Many brides now have a larger stock of gold and diamond jewellery.

Says Vijay Khanna of Khanna Jewellers, Delhi, “Big or small, gold is an integral part of weddings across India. Regardless of religion, caste or social class, every father wants to gift his daughter a lot of gold – which is her stree dhan. It is customary and with lesser money to be spent on wedding arrangements, this money is invariably being spent on gold and diamond jewellery for the bride.” It is true that the lockdown has curtailed the size of Indian weddings and therefore most families have a lot of money now being spent on gold. Buying and gifting gold during Indian weddings is a long standing tradition – irrespective of hike in gold price this tradition will continue.

Opines Lalit Musal, Motisons Jewellers, Jaipur: “No we haven’t observed any upward trend in gold sales. What I have observed is that – post lockdown, spending has become more necessity-based. Demand for bridal jewellery is bare minimum.”

No luxurious spending on travel

Post wedding luxurious honeymoon arrangements also have forcibly been reduced as the pandemic is a global phenomenon and therefore that cost too has been saved. Vastupal Ranka, of Ranka Jewellers, Pune says, “Lavish pre and post wedding expenses have been brought to a bare minimum and therefore most families have a lot of unspent money at their disposal. They are buying gold as it offers an excellent investment option as well.” Those who like to invest in gold, will find an excuse to do so. Unspent pile of cash, gives them the right opportunity as well.

Says Samarth Prakash, Alankar Jewel Art Pvt. Ltd., Meerut, “A lot of money which was to be spent on pre and post wedding arrangements is now being invested on buying gold and diamond jewellery or gold.”

The yellow metal is indeed reigning supreme, despite increase in price – the demand is indeed rising. Says Pankaj Khurana, Khurana Jewellery House, Amritsar, “Yes, it is 100 per cent true that a lot of expenses have been cut short because of the lockdown. This is surely a positive trend for the industry as a whole.”

Investing in gold is most profitable

Currently, investing in gold is the wisest investment decision that any investor will agree upon. Gold is giving the best returns on investment in the current scenario and therefore all of those who are looking at maximizing returns on investment are buying gold. According to Anil Kataria,of D P Jewllers, Indore, “Currently, gold is surely the best investment for anyone, the prices of gold will increase, analysts opine that before the end of this year it could touch Rs 65,000to 70,000 per 10 gms, which is a good return on investment.” This is one of the precise reasons, why many middle and upwardly middle class people across India are buying gold.

A lot of people are coming forward to buy jewellery because they have lots of unspent money. Agrees, Pratap Kamath of Abaran Timeless Jewellery, Bangalore, “Yes we see that happening all the time, these days.”

Traditionally, in India families do not sell gold. “Yet gold bonds and gold-backed securities are good investment options, if families want to make the best of both tradition and cash in on good return on investment option,” suggests P N Prasad,(Retd) Dy Managing Director, State Bank of India, and Chairman of the Coordination Committee on Gems and Jewellery sector. The yellow metal will not lose its sheen ever.

Verdict: True

Post pandemic dawn is colouring the skies gold, the yellow metal will not lose its sheen and truth be told – jewellery retailers, analysts, and experts all opine a bright future for this rare metal