PUNE: Every year, jewellery retailers eagerly wait for the wedding shoppers to throng their outlets once the buzz of the festive season fizzes out. However, this year, business has taken a hit insppite of the ongoing wedding season. 

The gold market in Pune is experiencing a lull in demand compared to the previous years. 

This slowdown is being attributed to the increased price of gold and the ongoing economic slowdown that has affected the spending power of consumers. 

Majority customers are prefering light-weight jewellery items - only the ones without which weddings are incomplete in India like bangles and mangalsutra.

“People mostly prefer light-weight jewellery this time. For example, even if someone wants to gift gold jewellery, they are going for 6g items, when they may have gone for a 10g piece had the scenario been different,” said Neelesh Niphadkar from Niphadkar Jewellers on Laxmi Road. He added that temple style and Kolhapuri designs are in demand.  “Due to economic slowdown and increased gold prices, there is around 25 to 30 per cent dip as compared to the last year. People are refraining from buying heavy jewellery and even if they are buying, they mostly buy in exchange of their old jewellery so that they do not need to pay much,” he added.

Last year, the prices of gold (1 g of 24 karat) were in the range of  Rs 3,140- Rs 3,302 in November.

This year, it has been hovering around the Rs 3,900-mark since Dhanteras, ie. October 25.  

On Tuesday, the gold price was Rs 3,822 (1 gm of 24 karat) in the Mumbai bullion market. Prashant Ashtekar, owner of BN Ashtekar Jewellers, said that customers’ budget this year has shrunk, affecting their buying capacity. He estimated that only 40 per cent customers have purchased jewellery this year, compared to 2018. 

Fateh Chand Ranka, President of Pune Sarafa Association and Director of Ranka Jewellers, admitted that there an overall lull in the gold market in Pune since Diwali and it hasn’t improved in spite of the wedding season.

“The increase in gold prices is due to the global rise in gold price and in India, there is additional increase of 2.5 per cent on import duty,” said Saurabh Gadgil, Chairman and Managing Director, PNG Jewellers citing this as the reason for high gold rates forcing customers to opt for light-weight jewellery. “Economic slowdown has caused a lot of uncertainty among the customers, so they are restricting to budget jewellery rather than heavier ones,” he added.