This Diwali may not be a glittering one for Coimbatore goldsmiths
COIMBATORE: Gold hit a record Rs 11,200 per gram on Tuesday, with goldsmiths and jewellers saying middle-class families are cutting down on ornamental purchases and buying only for essential occasions as the metal has become increasingly unaffordable.
M Samson, managing director of Trichy Jewellery Manufacturers Consortium Pvt Ltd, said, “Before the Covid-19 period, gold was priced around Rs 4,000 per gram. Now, it has risen to Rs 11,200 -- a nearly threefold increase in five years. Around 60% of the business was wiped out, and only 30%–40% of operations remain."
"Purchases are now mostly for weddings or essential purposes. Those who can afford it prefer to buy coins and store them as investments rather than ornaments. However, gold coins cannot be pledged at banks, which limits their use,” he said.
Coimbatore Goldsmiths’ Association president SM Kamal Hasan soaring gold prices have pushed the traditional goldsmithing industry into one of its worst downturns in recent memory. “Before Diwali, the price is expected to rise further by around Rs 1,000 per gram,” he said.
S Thiyagarajan, a goldsmith from Eluthani Kara Street, Madurai, said, “Middle-class people have stopped buying gold. Earlier, Diwali used to bring full orders; now we hardly get half a day’s work. This is the worst Diwali we have ever seen. Many goldsmiths have switched to silver and imitation jewellery just to make a living,” he said.
Jewellers and Diamond Traders Association president Jayanthilal Challani said, “The upward trend in gold prices is likely to continue. Many central banks across the world are increasing their gold reserves as a safeguard against economic uncertainty. Meanwhile, the US Federal Reserve’s large-scale currency printing weakened the dollar, which in turn strengthened gold prices globally.”
Kalyan Jewellers executive director Ramesh Kalyanaraman said gold continues to be valued both as a long-term investment and as part of our traditions. “With Diwali followed by the wedding season, purchases are occasion-driven rather than discretionary. Customers plan within their budgets but continue to invest in jewellery for these key moments,” he said.
M Samson, managing director of Trichy Jewellery Manufacturers Consortium Pvt Ltd, said, “Before the Covid-19 period, gold was priced around Rs 4,000 per gram. Now, it has risen to Rs 11,200 -- a nearly threefold increase in five years. Around 60% of the business was wiped out, and only 30%–40% of operations remain."
"Purchases are now mostly for weddings or essential purposes. Those who can afford it prefer to buy coins and store them as investments rather than ornaments. However, gold coins cannot be pledged at banks, which limits their use,” he said.
Coimbatore Goldsmiths’ Association president SM Kamal Hasan soaring gold prices have pushed the traditional goldsmithing industry into one of its worst downturns in recent memory. “Before Diwali, the price is expected to rise further by around Rs 1,000 per gram,” he said.
S Thiyagarajan, a goldsmith from Eluthani Kara Street, Madurai, said, “Middle-class people have stopped buying gold. Earlier, Diwali used to bring full orders; now we hardly get half a day’s work. This is the worst Diwali we have ever seen. Many goldsmiths have switched to silver and imitation jewellery just to make a living,” he said.
Jewellers and Diamond Traders Association president Jayanthilal Challani said, “The upward trend in gold prices is likely to continue. Many central banks across the world are increasing their gold reserves as a safeguard against economic uncertainty. Meanwhile, the US Federal Reserve’s large-scale currency printing weakened the dollar, which in turn strengthened gold prices globally.”
Kalyan Jewellers executive director Ramesh Kalyanaraman said gold continues to be valued both as a long-term investment and as part of our traditions. “With Diwali followed by the wedding season, purchases are occasion-driven rather than discretionary. Customers plan within their budgets but continue to invest in jewellery for these key moments,” he said.
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