As gold crosses Rs 53,000 per 10 gm mark following the struggle between Russia and Ukraine, persons are cancelling their orders positioned with the jewellers or suspending purchases that they had deliberate for the wedding months of April and May.
Leading commerce our bodies mentioned small-finances weddings are being postponed as households are ready for gold prices to chill off. This pattern is extra seen in South India, the place gold is an integral a part of the marriage. “Gold business in Zaveri Bazaar, the largest gold hub in the country, has come to a standstill as the price of the yellow metal has gone up steeply. People are cancelling orders which is forcing the retailers to cancel the orders they have placed with jewellery manufacturers and wholesalers,” mentioned Surendra Mehta, nationwide secretary, India Bullion and Jewellers Association (IBJA).
In the final fortnight, gold prices have gone up 7.38% from ₹49,938 per 10 gm to ₹53,595 per 10 gm, pinching the pockets of the shoppers. B Sabarinath, president, Coimbatore Jewellers Association, mentioned many households in Tamil Nadu and different elements of South India are suspending weddings by two months as their finances goes haywire.
Trade our bodies point out that just about 15-20% of the marriages have been postponed as a result of rising gold prices. “Small-budget weddings are largely being postponed by two months as families are waiting to see what happens at the Russia-Ukraine front. They are hoping for war to come to an end at the earliest so that gold prices come down and stabilise at a level, giving them the chance to purchase gold. Marriage without gold is not a common practice in South India,” B Sabrinath mentioned.
South India continues to be the biggest shopper of gold within the nation, with the 4 southern states accounting for over 40% of India’s total annual gold consumption of 800-850 tonnes. Tamil Nadu leads the race in gold consumption, adopted by Kerala.
B Muthu Venkatraman, proprietor of Mahalakshmi Jewellery and a number one south-primarily based gold producer, mentioned orders from retailers and wholesalers dried up as soon as the prices began shifting up.
