For six months, Fatehchand Ranka, president of the Maharashtra Rajya Saraf Suvarnakar Federation, has been listening to fellow jewellers complain about the rising gold and silver prices that were driving away customers. Footfall had fallen by 50 per cent, and the once-stable business was losing its shine.
“I told them that the rising gold prices were like a balloon that would burst,” Ranka tells The Indian Express. On Friday, as gold and silver prices crashed in the stock markets, Ranka was watching carefully. “The volatile market is like a gamble,” he adds.
The majority of buyers are not aware of the exact prices – or the effect of price correction on their purchases – unless they visit the shops. Across Pune on Friday, the crowds at jewellery shops – or the lack of them – still reflected the realities of the past few months when soaring prices discouraged many people from buying gold. Though stores, such as Neelkanth Jewellers of Laxmi Road, have been witnessing packed showrooms, several small and large outlets say that the numbers of customers have dipped sharply compared to previous years.
“We have a wedding. We cannot compromise on jewellery so we have consciously cut costs on things, like décor and catering, and even reduced the number of outfits for the wedding. Gold is not just jewellery, it is security and tradition. Even if prices are high, we believe it will hold value over time, so we are prioritising this expense,” said Jyoti Devadkar, who was shopping for bridal ornaments on Laxmi Road.
Others adopt a more pragmatic approach. “We are buying lighter jewellery and avoiding impulse purchases. We still see gold as an investment, but we are being careful with how much we spend,” said Archana Bhosale, who is also shopping for a family wedding.
Monika Daga, 35, puts it, “People will not stop buying gold. It is a necessity. As far as the wedding season is concerned, they will prefer light-weight gold alternatives.” Many are following suit, planning to buy half of their overall gold requirement, while exploring options like swapping old gold for new designs to manage the high prices. Daga herself intends, ” I will explore better designs and swap my old gold to make most of my budget.”
However, not everyone is taking the price hike lightly. Shailaja Deshpande, 76, calls the price hike an injustice, and stresses, “every Indian girl should be able to afford gold for her wedding; it is her right to buy gold.” In the same vein, Sharada Mehta, 78, says, “Our family has had a traditional trust in gold since generations; we buy gold every year no matter what.” Many see gold as a “safe investment” that has been a part of Indian tradition for ages.
For Pushpanjali Verma, 34, the rising prices are a concern, especially with the wedding-season. She says, “Gold prices were very affordable when I got married 10 years ago. Now, with twin daughters, I’m worried about affording gold for their future weddings. With my brother’s wedding approaching, I’m planning to buy gold coins, since they are a better investment, without the making charges and other costs that come with jewellery. It’s clear that gold has become a luxury, and it’s affecting our purchasing decisions.”
Atul Kadam, owner of Kadam Jewellers Pimpri Chinchwad, said, “For small jewellers, like us, the impact of rising gold prices is felt more strongly compared to that by bigger brands. When gold prices remain high, customers hesitate to buy new ornaments and prefer repairing old jewellery. That trend has been visible at our shop in recent weeks,” he says. Kadam adds that Friday’s sudden crash had created uncertainty among customers, directly affecting sales. “The wedding season is now over, which has further reduced demand for new ornaments. At the same time, silver prices have also come down, leading to a drop in silver purchases. Overall, fluctuating prices and seasonal factors have slowed down business for small jewellery shops like ours,” he says.
Several shop managers said that customers were delaying decisions. They pointed out that people were visiting stores mainly to compare designs and rates, with many choosing to wait. Silver sales have also seen a mild increase, particularly for coins, utensils and gifting items, though traders say it remains a secondary choice compared to gold during weddings.
Jewellers witnessing strong sales say trust and brand reputation are key factors. “When prices rise, customers prefer known stores where purity, transparent billing and resale assurance are guaranteed,” said Ratnadeep Rajurkar, the owner of Rajurkar Jewellers. He added that while average weight per transaction has reduced, wedding related demand remains firm.
According to Dnyaneshwar Sarwade, showroom manager at Malabar Gold & Diamonds, the market is not sustainable, but investors continue to see gold as a safe haven. “The rising gold rate hasn’t affected our sales. Customers have been regular. We have numerous schemes for relaxing the effect of gold price hike,” he says, pointing to the trend of buying lightweight jewellery.
