Sachin Jain, Regional CEO, India, World Gold Council said, “Gold has touched historic high prices of Rs 71,000 per 10 grams in India resulting in near stagnant jewellery demand in first quarter in both rural and urban centres as per anecdotal feedback from the jewellery retailers.
Over the years, the Indian households have created a strong cultural bond, underpinned by strong economic wisdom, between gold and auspicious festivals so much so the positivity around these festivals are enhanced by a token purchase of gold.
Hence, the start of current festive season with Gudi Padwa, Ugadi, Chaitra Navratri and Ramzan Eid falling in April, it should see an uptick in consumer purchases and drive the gold demand upwards. Past few days, industry has been reporting increased consumer interest and good prior bookings for festivals.
Also, during the general election period for next two months, there will be heightened scrutiny on the movement of gold and cash. Except during festivals, gold jewellery demand will likely remain subdued during large part of Q2, even if prices moderate over the coming months. On the flip side, higher prices could encourage investment into gold-linked digital and investment products.”
Amit Pratihari, Vice President, De Beers Forevermark said, “At De Beers Forevermark, we have witnessed a growth in consumer buying patterns towards the purchase of items that hold meaning and value. In the run-up to the auspicious festival of Gudi Padwa, which marks new beginnings, we have seen the purchase of natural diamonds emerge as the preferred choice among our consumers due to their inherent preciousness.
Our consumers are drawn towards our classic, contemporary designs that reflect an innate simplicity allowing them to wear diamonds every day & celebrate even the small moments.”
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