Written by Jigisha Seal and Avantika Basu
As geopolitical tensions in West Asia continue to affect Indian markets, gold prices have fallen sharply in recent days, prompting jewellers in Kolkata to urge buyers to stock up on the yellow metal while rates remain low.
Traders said this might be “the best time to buy gold,” even as ongoing volatility keeps customers cautious.
A sales representative at P C Chandra Jewellers in Gariahat said gold prices rose from Rs 12,800 on March 23 to Rs 13,000 on March 24, and to Rs 13,305 on March 27.
Speaking to The Indian Express, Bablu Dey, president of the Swarnashilpo Bachao Committee, said gold rates are now fluctuating multiple times a day, creating uncertainty among both traders and customers.
“Customers are confused. Gold prices fluctuate several times a day, and many are unsure whether to buy now or wait for a further drop. This hesitation is beginning to impact business,” he said, adding that buyers are becoming increasingly cautious, reluctant to invest amid volatility.
Dey highlighted that the ongoing West Asia conflict has strengthened the US dollar, weakened the rupee, and triggered a market decline. “Investors are shifting towards crude oil and gas instead of gold,” he said.
While prices had been declining over the past few days, a slight surge was observed in recent days. “It is the best time to buy a little gold or as needed. It is better as the price might skyrocket in the near future,” he said.
Mixed trends
At the same time, as price volatility continues, some jewellers said they have seen a visible increase in customer footfall.
“Customer footfall had dropped by nearly 30-45 per cent over the last six months. Since the gold rate decreased, buying has definitely increased,” said Mukesh Dey, the manager at Ram Chandra Jewellers.
When asked about the future, he said, “Gold is something people won’t stop investing in, so the current dip is the perfect opportunity to buy gold”.
However, the broader trend remains uneven. In Bowbazar, a key gold market, jewellers say customer footfall has been declining since the pandemic.
“A year or two ago, the shop would remain crowded throughout the day. Now, footfall has reduced significantly over the past six months. The impact is visible in the store’s profit that dropped from around Rs 1.7 lakh to Rs 1.3 lakh,” the in-charge of Modern Guinea House, a jewellery outlet, said.
“Our sale has suffered since the pandemic. How can we blame people? They don’t have the money. How will they buy gold?” said a manager at Manihar Jewellers.
Impact across businesses
While larger jewellers are managing to stay stable, smaller players are struggling.
In Madhyamgram, Sandip Roy, the owner of Roy Brothers Jewellers, reported a complete slump in sales over the past week. “Sales dropped by 100 per cent in the last week,” he said, reflecting how quickly uncertainty affects buyers.
In Bowbazar, Gold Emporium saw sales fall by nearly 90 per cent over a month. “Prices have affected business, but I won’t fully blame the war,” the manager said.
The contrast highlights a widening gap in the market: established retailers are better equipped to absorb fluctuations, while smaller shops remain highly vulnerable to sudden shifts in prices and consumer demand.
(Jigisha Seal and Avantika Basu are interns with The Indian Express, Kolkata)