Soaring Gold Prices Fail to Deter Gudi Padwa and Ugadi Buyers

Jewellery Industry Expectations Soar Ahead of Gudi Padwa and Ugadi

The jewellery sector is poised for a robust festive season, with key players offering attractive discounts and old-gold exchange schemes to lure buyers. Despite a 69% increase in gold prices compared to last year's festive period, executives expect steady demand, driven by the ongoing wedding season, strong cultural affinity for gold, and the growing presence of organised retail.

Market Leader Tanishq has rolled out a Rs 600 per gram discount on gold jewellery, while up to 20% off on diamond value. PN Gadgil & Sons, a leading player in the Pune market, is offering a 50% discount on gold jewellery making charges and 100% off on diamond jewellery. The demand for plain gold jewellery remains subdued, but companies anticipate robust demand for studded jewellery.

Consumers are increasingly opting for lighter gold jewellery and diamond-studded designs when prices rise, according to the All India Gem & Jewellery Domestic Council (GJC). The industry expects Gudi Padwa to set a strong start to the season, backed by encouraging pre-bookings and positive consumer sentiment.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Key Statistics:

• 20-25%: Expected value growth over last year
• 50%: Sales growth in the third quarter
• 69%: Increase in gold prices compared to last year's festive period

Industry leaders, including Saurabh Gadgil, Chairman and Managing Director, PNG Jewellers, remain optimistic about the festive season. Despite the escalating crisis in the Middle East, jewellery makers do not see any impact on buying sentiment. Amit Modak, Director and Chief Executive Officer of PNG Sons (P.N. Gadgil & Sons Ltd), noted that consumers are mentally prepared to buy gold at current rates, and demand is expected to remain strong throughout the weekend.