look news india
Ahmedabad: Experts at the jewelery industry say that the wedding season has started and now the jewelery industry is worrying whether the demand will be returned at these high prices. At the current high value, gold is becoming out of the reach of low and middle class, which are the largest buyers in terms of quantity. The continuous increase in gold prices has led to a decline in demand for jewelery.
According to a survey, the general perception is that only rich people buy gold, but on the contrary, 56 percent of gold is purchased by people of Rs 2 lakh to Rs 10 lakh. The price of gold has doubled since 2022, but the savings of people with this income have not increased, so their capacity to buy gold has reduced.
The international price of gold has exceeded $ 3,000 an ounce. One ounce is about 28.35 grams. Now this price is expected to increase to $ 3,100. However, technically, there is adequate purchase of gold in the short term. When his purchase increases greatly, his return starts.
The American tariff policy has also created apprehension that the fee on gold and silver can also be increased, which will send their physical stock to America, which will increase prices.
In view of these conditions, the Indian Bullion and Jewelers Association said that there is a demand related to marriage, but people’s trends are moving towards low carat and low weight jewelery. Currently gold is hallmark with more than 14 carat purity. Low carat jewelery, especially 18 carat ornaments, are used to make diamond -studded jewelery.
According to the World Gold Council, 34.8 tonnes of old gold was sold for cash in the March quarter of 2023. 38.3 tonnes of gold was sold in the March 2024 quarter and the figure may be crossed in the current march quarter. The exchange of new jewelery in lieu of old jewelery has also increased rapidly and may soon be half of the total sales.
