Gold scales 87K in city markets, hits marriage-season shopping
Times of India | 10 February 2025
12 Kolkata: Prices in the Kolkata market touched Rs 87,000 per 10 gm for 24K gold. The development has left city jewellers worried as gold jewellery orders have halted for a while during the marriage season.
On Saturday, 24K gold in Kolkata was sold at Rs 87,160 (including GST). The price of 22K gold was around Rs 84,500 (including GST), leaving the marriage season buyers in a fix. They have now decided to wait before ordering for the marriage season.
"Increase in the price of gold is a major cause of concern now. Footfall in shops has gone down drastically, and orders have slowed down significantly," said Shubadip Roy, designated partner, Bengal Jewellery.
What worries the jewellers more is the frequent increase in the gold price during the past month. On Jan 15, the gold price (24K) was Rs 80,330 for 10 gm. In the next 15 days, it increased to Rs 83,200. In the last week, it further increased by Rs 3,960 to cross the Rs 87,000 mark.
"We are also witnessing a drop in footfall across the industry. Gold prices have been on a frequent rise over the past few years, so people were getting accustomed to that. But recent hikes have halted their jewellery buying decision," said Suvankar Sen, MD and CEO of Senco Gold Ltd.
The average budget for jewellery buyers during the marriage season ranges between Rs 8 lakh and Rs 10 lakh. With gold prices on a constant rise, the volume of purchase has come down. "Many buyers are opting for redesigning old jewellery to save expenses," said a city jeweller.
Customers are used to gold prices going up, and they are also confident that gold isthe best form of investment, which is extremely safe. "So customers will continue to buy jewellery as per their requirements even if there is a temporary setback," said Anarghya Uttiyo Chowdhury, partner, Anjali Jewellers.
Rupak Saha of Shyam Sundar Co Jewellers, however, felt that the temporary setback will be compensated by an increase in demand for the Valentine's Day celebration. "There are offers in almost every store for Valentine's Day. Even if a jeweller offers a 30% discount on making charges, it translates to more than Rs 400 reduction in prices per gram. This is a significant reduction in price, and people are likely to avail themselves of that opportunity," Saha said.
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