Solid gold buying increases, sale of jewellery decreases

The rising prices of gold seem to keep the investor interest alive, but give no relief to the gold jewellery retailers. Purchase of gold as an investment is on the rise, as reports say there is a 15-20 percent increase in sale of solid gold. It was reported in a leading media that MMTC sold gold coins at Rs 18,155 for 10grams.

But on the other hand, sale of gold jewellery has dipped by almost 50 percent in the current bridal season. With gold prices almost reaching Rs.17,000 per 10 grams, consumers are skeptical of buying new jewellery. Jewellers are seeing fewer footfalls; while the big stores are relying on their regular clientele, the smaller ones are being hard hit. Reports say that consumers are buying only what is necessary - either lighter jewellery, or jewellery only for the bride. The family as a consumer is holding back from purchases, and is rather indulging in re-making new sets out of old traditional jewellery, reports say.