Prices Take The Sheen Off Gold, Keep Buyers At Bay

Hyderabad: The sharp rise in the gold price has left many customers hesitant to buy jewellery. With 24-carat gold crossing Rs.1.13 lakh per tola in the local market, jewellers and traders are waiting for Diwali and the oncoming wedding season to revive business.

“People are coming to our shops, but they are only asking about the prices. Very few are actually buying. “When the price goes up this much, customers prefer to wait and watch”, said Chinta Ramesh, a jeweller in Begum Bazaar. He said this slowdown was temporary, as festivals and weddings usually bring steady demand for gold, regardless of the market rate.

With Diwali just a month away, many believe that sales will pick up again. Suraj Aggarwal, a gold dealer near Begum Bazaar’s Chatri, said “We have seen this trend many times. When rates shoot up suddenly, people stop purchasing for a few weeks. But during Diwali and wedding season, families cannot avoid buying gold, even if it is expensive.”

Jewellers are also noting a shift in buying behaviour, with some customers choosing lighter ornaments instead of heavy sets.

“Earlier, people would purchase bigger items for weddings like heavy necklaces and rings. This time, they are asking for smaller designs to keep within their budgets”, Ramesh added.

With festive and wedding seasons just a month away, customers were apprehensive. Balalaxmi, a customer from Mahbubnagar who was looking for gold products, said “I brought some money to buy a vaddanam (waist belt) for my future daughter-in-law, but I don’t think I can buy one. The prices are completely out of my budget.”