Gold Price Makes Women Shun Jewellery, Opt For Coins

From Hyderabad to Secunderabad, jewellery outlets have decorated since last week, featuring glitzy advertisements with models and film stars and offering lucrative discounts on making charges. Yet, despite the visual appeal, sales remain subdued.

Rajesh Ranka of Dhanraj Jewellers said, “People are investing in gold biscuits rather than buying ornaments because of the current trend. Gold sales have seen a decline in volume, primarily due to historically high prices. However, the overall sales value may remain steady — or even increase — because of these high rates, with a notable shift towards lightweight jewellery, silver, and smaller gold coins.”

During Diwali in 2023, 10 grams of 999-purity gold cost ₹61,500; by 2024, the price rose to ₹80,000; and this year’s festival marked a sharp spike to ₹1,32,000. Silver prices skyrocketed from ₹73,000 per kilogram in 2023 to ₹98,000 in 2024 and further surged to ₹2,03,000 this Dhanteras.

Analysts and jewellers have noted a potential 20 to 25 per cent decline in sales volume, while consumers are opting for smaller pieces or alternative investments like silver. They are now buying gold in the form of biscuits or coins.

Speaking exclusively to Deccan Chronicle, Ashok Shermal Jain, president of the Pot Market Jewellers Association, revealed that retail sales of gold jewellery have plummeted by nearly 50 per cent over the past two years. The bullion market in terms of value, however, has surged impressively by over 150 per cent.

He said customers preferred pure gold coins and bars, available in denominations ranging from 1 gram to 100 grams, including popular sizes of 2, 10, 20, and 50 grams, catering to varying budgets and preferences.

Sarla Reddy, a software engineer, said, “I loved buying gold jewellery for its aesthetic appeal and tradition, but now I prefer coins and bars. They feel like a safer investment for my savings.”

“Family priorities have changed. My daughters are more interested in investing rather than just buying jewellery. It’s a practical decision given the price surge,” said Jaya Kumari, a homemaker.

Nandini Sharma, a young entrepreneur, added, “Bullion gold gives me flexibility. I can buy according to my budget without compromising on quality, unlike ornaments which often come with making charges that I want to avoid.”

“This shift also reflects a change in mindset. Women today understand the financial significance of gold beyond just wearing it,” said Lalitha, a schoolteacher.

At the city’s biggest jewellery workshops — Gulzar Houz, Sultan Shahi, Pot Market, Abids, and Gunfoundry — activity has slowed considerably, leaving many artisans without work. Sukdev Pandit, a craftsman, said, “We have had very little job work since January. The last three months have been particularly bad.”

The festive sentiment remains strong among Hyderabadis. “Sales are down, but people are still buying small ornaments. There are weddings too,” said Suman Mukta, a gold market specialist. “Traders are offering designs that appear larger but use less gold, thanks to new technology. Some speculation in the market suggests that gold prices may come down soon.”

Amarnath, an analyst and investor, explained the driving forces behind this trend. “Despite the traditional sentimental value attached to gold and silver, global geopolitical shifts have reshaped investment behaviour. The US policy under the Trump administration, which shifted from a ‘frenemies’ approach to a more confrontational stance which has weakened the dollar. Coupled with global uncertainties, central banks have been bolstering their gold reserves to stabilise their economies, pushing prices sharply upward both internationally and within India.”