GJ Town India

  Consumers are now moving towards lightweight jewellery   Colin Shah, Founder and Managing Director of Kama Jewelry view, the recent gold price surge to all-time highs, above ₹1.10 lakh per 10 grams in domestic futures, has been mostly propelled by international reasons like geopolitical tensions, trade turmoil, the effect of American tariffs, and poor labour market indicators in the U.S. that led to the Fed rate reduction. These have added to the appeal of gold as a safe haven asset globally.    Whereas such sharp increases have dampened conventional retail consumption in the near term, we are of the view that festival and wedding season will restore demand in India. Cultural and emotive value means that gold buying remains a priority at auspicious moments. Consumers are now moving towards lightweight jewellery ranging between 14K to 18K on grounds of affordability, and the shift in perception among the young generation towards gold as a prestige value rath...

The noticeable impact on Akshaya Tritiya demand   Somasundaram PR, Regional CEO, India at World Gold Council, shared his view on Akshaya Tritiya; “India's gold jewellery demand declined by 26% y-o-y in Q1 2022, to 94 tonnes, after reaching record highs in Q4 2021.   Fewer auspicious days, combined with a sharp spike in gold prices meant fewer weddings and a pause in retail demand, with households deferring gold purchases in the hope of a price correction.  As a major gold buying festival, we should see Akshaya Tritiya overcome these barriers and provide further impetus to demand in the second quarter. Underlying consumer sentiment is improving, which should also prove supportive.   The noticeable intensity of marketing efforts by players on the back of new digital and omni-channel retail strategies will positively impact demand during Akshaya Tritiya. Economic growth, combined with inflationary expectations, are poised to bolster gold purchase this festive season,...