Sale of gold jewellery drops to almost 75% in the last two weeks in Coimbatore due to the Russia-Ukraine war

In the last two weeks, with a steep increase in gold prices, jewellery sales have declined to result in loss of business for goldsmiths and manufacturers.

According to B. Sabarinath, president of Coimbatore Jewellers Association, sales in the last two weeks have dropped almost 75%. “It is the mid-income people who are affected. Many plan to even postpone weddings. Everyone knows that gold prices are up only because of war. They expect the prices to drop and are deferring purchases,” he said.

However, the jewellers are not sure how early and to what extent the decline in prices will be. “We are not sure of the price trend because of uncertainties in the global scenario. There is no guarantee of the prices falling,” he adds. Customers are purchasing only if it is essential to buy jewellery now. Since this is also the end of the financial year, the jewellers will see the high stock value, resulting in higher payment of taxes. “Everybody is waiting for the war to end. We are all waiting for the rates to come down,” he says.

Coimbatore Jewellery Manufacturers Association, B Muthu Venkatraman told The Hindu that gold jewellery manufacturers here, who get orders from across the country, are now seeing just 25% of normal business. The drop in sales is seen in all States as jewellery prices are not affordable to customers and the hike is ‘artificial’. “The public is waiting for the right prices to invest in jewellery,” he said.

What is of concern to the manufacturers is the threat of prices going up further in the coming days, he added.

S.M. Kamal Hasan, president of Coimbatore Goldsmiths’ Association, said close to 40,000 micro-units, with nearly two lakh people dependent on these for livelihood, are without proper work for the last few days here. Goldsmiths have lost more than 60% of work. “Our orders are getting cancelled. Weddings are postponed by a month or two. A mid-income family will buy about 25 sovereigns for jewellery for a wedding. With purchases by close relatives, the total sales for one wedding will be close to 100 sovereigns. When marriages get postponed, it affects sales,” he said.

Courtesy: The Hindu