Are Rising Gold Rates Affecting Gold Jewellery Sales at IIJS Signature 2023?

Jewellers at IIJS Signature share concerns and try to infer at what point the rates could stabilize

Post By : Kamakshi VF On 07 January 2023 5:14 PM

As GJEPC’s IIJS Signature 2023 closes on the third day, jewellers shared their sentiments and gauged the pace of the show. The first day was slow with least business, the second day saw trade pick up and today business was conducted with gusto. Gold jewellers spread across Halls 1 and Hall 4 expressed their thoughts about the climbing gold rates affecting gold jewellery sales.  

 

After charting almost 14.30 per cent rise in 2022, the ‘safe haven’ metal – gold was trading at Rs 55,820 per 10 grams on Thursday when the show launched. Jewellers at the event were optimistic about the rise in the value of the yellow metal stating that it meant good business prospects. Jignesh Mehta, MD, Guru Kripa Exports said that the Russia-Ukraine war, Corona and situation in US had affected global gold rates. He adds, “The sentiment at the show is optimistic, because in the Indian market, gold price rise does not matter and with the thought that in a span of 2 months it may go still higher, people are surely making purchases. Our sales have risen due to the wedding demand.” Sandeep Mehta MD of Mehta Gold says that the sentiment is floating and adds, “If the rate stabilizes it will be good for business. Even if it stabilises at Rs 60,000 it will be beneficial for trade.”

Praveen Agarwal, Director of Geeta Shyam Jewellers says that gold rates rising is nothing and adds, “Rising gold rates is fayademund and never a nuksaan. Gold rates are not directly linked to price and sales of jewellery. It is a forced association.” He says that the retailer and the consumer could be affected by the rising rates of gold; “but as a manufacturer we are not afraid and making purchases as and when needed, and everyone is buying too, as it is the usual bridal seasonal purchase.”

Commenting on the expected price rise, Mehta said that he expected the price of gold to reach at least Rs 60,000 to Rs 65,000 before gaining stability and said, “I have heard people speculating that rates could even touch Rs 80,000.”  Agarwal says that he expects gold rates to reach about Rs 60,000 which according to him is very positive for the gold industry. Ayodhya Prasad Seth, Director of Shanti S. Seth Jewellers is of the opinion that though the rates of gold would span Rs 58,000 they would not breach Rs 60,000.

Cover image jewellery courtesy Akshar Jewellers (www.aksharjewellers.com)

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