Gold jewellery loses weight as prices keep buyers at bay

Gold, the safe haven investment for many, has also been a traditional style and status symbol in India. Now, with prices of the precious metal scaling new heights every day, a different style statement has been created - one of lightweight jewellery.

"With the rising gold prices, how can I afford chunky jewellery? Instead, I have decided to buy some lightweight delicate jewellery for my daughter. I can buy her some heavyweight jewellery once the price of gold goes down," said Meenakshi Acharya, who recently had gone shopping to buy her daughter some ornaments for her wedding.

According to jewellers, who are witnessing a rising demand for lightweight ornaments, the 62-year-old homemaker is not alone. "Customers are asking for lightweight jewellery. They want to invest but are choosy. As the marriage season nears, we are focusing more on getting more lightweight jewellery done to meet the demands," said a jewellery shop owner in Mumbai, who did not wish to be named.

PERSPECTIVE: Safe-haven status adds glitter to gold

According to jewellers, many consumers are waiting for a price correction instead of buying too much jewellery now. So, for the time being they are purchasing lightweight jewellery to meet their immediate requirements such as those that crop up during festivals and ceremonies.

"Business has almost come to a standstill, apart from the regular sales of five to 10 grams," said Kumar Jain, one of the partners at Umedmal Tilokchand Zaveri and vicepresident of the Mumbai Jewellers Association.

"The jump in price in a short time has now forced customers to wait. Lightweight jewellery sets of 15-20 grams that can be bought for around Rs 45,000 are in demand," said Jain.

The jewellery added that festivals such as Rakhsabandhan and Ganesh Chaturthi have resulted in a few purchases but the actual scenario will be clear only in October before the marriage season starts in November.

"I am looking forward to the prices going down. How can a middle-class person like me afford such prices? I wanted to gift my mother a good pair of earrings this Ganesh Chaturthi but had to settle for a ring due to the rocketing prices," said 29-year-old Vinay Mahakul who works for an advertising firm.

After touching a record high of Rs 28,700 per 10 grams on Tuesday, gold prices fell a little to Rs 27,680 on Wednesday evening.

Courtesy: Mail Today