Gold price has been affected after reaching a record high of $ 90,500 to 90,800 per 10 grams in Mumbai’s spot bullion market, international price on Friday after a record high level of $ 3,000 an ounce. Industry traders said that the jewelery industry is now arguing whether the demand will be withdrawn at these high prices, as the wedding season has already started. However, businessmen are now preparing to change the framework of demand and are considering changes in products.
Chirag Seth, Principal Advisor to London -based bullion research firm metal focus, said that gold is getting out of the low and middle class reach at current high prices, which is the largest buyer according to the quantity.
According to a survey conducted by the Indian Gold Policy Center in IIM Ahmedabad, the general perception is that only rich people buy gold, but in contrast, 56 percent of gold buy gold, who come in income group of Rs 2 lakh to 10 lakh. The price of gold has doubled since 2022, but the savings of this earned people have not increased, so their ability to buy gold has decreased.
The international price of gold has risen to $ 3,000 an ounce, due to which a large amount of borrowing is to be borrowed by the German government. One ounce is about 28.35 grams. Traditionally the German government has been one of the most financially responsible governments in the world and has avoided heavy borrowings. The conflict between US President Donald Trump and Ukraine President Wolodimir Jailonski has an unexpected effect. Germany felt that it would have to spend too much on defense as the US could no longer depend on.
Corporation Arora, a US -based algorithm analyst and author of the Arora report, said, “Gold loves government borrowings, as gold is weakened by gold when weakened. However, according to a short duration, there has been a lot of technical purchase of gold. When its shopping is very high, its return starts. There is also fear from the US fee policy that the fees on gold and silver may also increase, due to which its physical stock is being sent to America and due to this the price has been increased.
In view of these conditions, jewelery businessmen working in India’s domestic market are preparing to deal with a high price situation. Surendra Mehta, National Secretary of the Indian Bullion and Jewelers Association (IBJA), said, “Marriage is a demand related to marriage, but has increased towards low carat and low weight ornaments.”
At this time, gold of purity above 14 carat is hallmork. Low carat ornaments, especially 18 carats are used to make diamond -studded jewelery. Mehta said, “We have sought permission from the government for 9 carat gold hallmarking.”
It will take time to get attraction towards low carat and low purity jewelery, but all this exercise is being done to preserve the business. There has always been a demand for gold, no matter what the price is. When the price is at a high level, buyers take some time to adapt. An industry official said that at this time the price is high, due to which gold coins, bar and jewelery are being sold, so that cash can be provided. When the price of gold is high, it usually happens.
The above mentioned officer said, ‘This time the quantity of sales is very high. This is being done to meet the need for inflation and cash. According to the World Gold Council, 34.8 tonnes of old gold was sold for cash in the 2023 March quarter. 38.3 tonnes of gold was sold in the March 2024 quarter and the figure may cross in the ongoing March quarter. The work of changing the old jewelery to new has also intensified and soon it can reach half of the total sales.
John Reid, Senior Market Analyst of Europe and Asia of WGC, said, “There has been a recent rise due to uncertainty over the US fee and growing trade war. Economic risk and market volatility is increasing, due to which investors have read interest in gold.
First Published – March 16, 2025 | 10:13 pm IST