Gold Jewellery Price: Jewellers expecting lower gold prices, pent-up demand to drive sales this festive season

Gold Jewellery Price: Jewellers expecting lower gold prices, pent-up demand to drive sales this festive season


Leading jewellers in the country are hoping festive season sales back to pre-Covid level as gold prices are down by almost 12 per cent compared to last festive season. A lot of pent-up demand too will drive gold consumption this year, they feel.

“This year’s jewellery buying trend has been about living life large. After two years of mental anxiety and challenges, customers want to spend and invest in jewellery for happiness and asset building. We have seen larger pieces of necklaces in gold or diamonds and statement pieces of bangles, earrings, and rings getting sold. Sales are expected to get back to pre-Covid levels, with an increase of 15-20 percent from last year,” said Suvankar Sen, CEO, Senco Gold & Diamonds.

Kerala-based jeweller Kalyan Jewellers echoed the same. Ramesh Kalyanaraman, executive director, Kalyan Jewellers said, “With the continued easing of COVID-19 related restrictions as well as a return of buoyancy in consumer sentiments across the markets, we believe there has been a greater acceptance of the ‘new normal’. The 3rd quarter of the financial year is one of the most important phases for the jewellery industry with the arrival of the festive season followed by peak wedding season. With gold prices dipping, the market response this Diwali is expected to be positive.”

Sunil Nayak, CEO at Reliance Jewels added “Undoubtedly gold prices have witnessed a hike as compared to that of the pre-pandemic times, but due to the imposed restrictions on weddings and huge gatherings, people have started to spend less on wedding rituals and Invest more on buying jewellery. Covid has further solidified the consumers mindset where they consider jewellery purchase not just for adornment but also as an Investment. Even spending in equity and vacationing has seen a hike this year, but jewellery can still be seen as a safer Investment. We are expecting a strong recovery in the Diwali sales for the year 2021.”

Parag Shah, director, HK Jewels Pvt Ltd, the retail jewellery arm of Hari Krishna Group,- “We are seeing a demand growth for gold in tier-2 cities. Also, this year’s jewellery buying trend has been about living life large. After two years of mental anxiety and challenges, customers want to spend and invest in jewellery. We have booked orders for 33% more gold in October 2021 over October 2020.”



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