For six months, Fatehchand Ranka, president of the Maharashtra Rajya Saraf Suvarnakar Federation, has been listening to his fellow jewelers complain about rising gold and silver prices that were driving away customers. Footfall had dropped by 50 percent and the once-stable business was losing its luster.
“I told them that the rise in gold prices was like a balloon that was going to burst,” Ranka tells The indian express. On Friday, as gold and silver prices plummeted in stock markets, Ranka watched closely. “The volatile market is like a bet,” he adds.
Most shoppers don’t know exact prices – or the effect of price corrections on their purchases – unless they visit stores. Across Pune On Friday, the crowds at jewelry stores — or lack thereof — still reflected the realities of recent months, when high prices deterred many people from buying gold. Although stores, such as Neelkanth Jewelers on Laxmi Road, have seen packed showrooms, several large and small establishments say that the number of customers has drastically decreased compared to previous years.
“We have a wedding. We cannot compromise on jewellery, so we have consciously reduced costs on things like decoration and catering, and have even reduced the number of outfits for the wedding. Gold is not just jewellery, it is security and tradition. Even if the prices are high, we believe it will maintain its value over time, so we are prioritizing this expenditure,” said Jyoti Devadkar, who was shopping for wedding ornaments on Laxmi Road.
Others take a more pragmatic approach. “We are buying lighter jewelry and avoiding impulse purchases. We still see gold as an investment, but we are being careful about how much we spend,” said Archana Bhosale, who is also shopping for a family wedding.
Monika Daga, 35, says: “People will not stop buying gold. It is a necessity. When it comes to the wedding season, they will prefer lighter gold alternatives.” Many are doing the same and plan to buy half of their total gold needs, while exploring options such as exchanging old gold for new designs to manage high prices. The Dagger itself intends: “I will explore better designs and trade in my old gold to make the most of mine.” budget.”
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However, not everyone takes the price increase lightly. Shailaja Deshpande, 76, calls the price increase an injustice and stresses that “every young Indian woman should be able to afford to buy gold for her wedding; she has the right to buy it.” In the same vein, Sharada Mehta, 78, says, “Our family has traditionally relied on gold for generations; we buy gold every year, no matter what.” Many view gold as a “safe investment” that has been part of Indian tradition for centuries.
For Pushpanjali Verma, 34, rising prices are a concern, especially during the wedding season. She says: “Gold prices were very affordable when I got married 10 years ago. Now, with twin daughters, I am worried about being able to buy gold for their future weddings. With my brother’s wedding approaching, I plan to buy gold coins as they are a better investment, without the manufacturing charges and other costs that come with jewellery. It is clear that gold has become a luxury and is affecting our purchasing decisions.”
Atul Kadam, owner of Kadam Jewelers Pimpri Chinchwad, said, “For small jewelers like us, the impact of rising gold prices is felt more strongly compared to that of bigger brands. When gold prices remain high, customers hesitate to buy new ornaments and prefer to repair old jewellery. That trend has been visible in our store in the last few weeks,” he says. Kadam adds that Friday’s sudden drop created uncertainty among customers, directly affecting sales. “The wedding season is now over, which has further reduced the demand for new ornaments. At the same time, silver prices have also dropped, leading to a drop in silver purchases. In general, price fluctuations and seasonal factors have slowed down the business of small jewelry stores like ours,” he says.
Several store managers said customers were delaying their decisions. They noted that people visited stores mainly to compare designs and rates, and many chose to wait. Sales of silver have also seen a slight increase, particularly for coins, utensils and gift items, although traders say it remains a secondary option compared to gold for weddings.
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Jewelers seeing strong sales say brand trust and reputation are key factors. “When prices rise, customers prefer well-known stores where purity, transparent billing and resale guarantee are guaranteed,” said Ratnadeep Rajurkar, owner of Rajurkar Jewelers. He added that while the average peso per transaction has reduced, demand related to weddings remains strong.
According to Dnyaneshwar Sarwade, chief exhibition officer at Malabar Gold & Diamonds, the market is not sustainable, but investors continue to see gold as a safe haven. “The rise gold rate It has not affected our sales. The customers have been regulars. We have numerous schemes to relax the effect of gold price “Walk,” she says, noting the trend toward buying lightweight jewelry.
(Swasti Jain and Vaishnavi Gujar are interns at The Indian Express)