Jewellers to make the most of festive fever with offers, making charges for physical gold

While gold jewellery appears to be ideal for purchase and adornment, a 6% drop in the global gold demand in Q3 2023, reduced interest in gold bars and coins, and diminished demand from central banks paint a bleak picture of gold as an investment

Buying gold is auspicious for Indians, especially as the festive season approaches. Consumers believe that buying more gold during Dhanteras improves fortunes.  While experts are unsure of how good physical gold is for a consumer’s portfolio, jewellers are doing their best to bring in consumers into their stores.

Capitalising on the love for bling, and women who want to add to their jewellery box, retailers are wooing hard this season. Be it free 1 gm gold coins on purchases, or discounts in making charges — most jewellers want consumers to go for physical gold.

“In addition to our collections, we are offering discounts to our valued customers. We are providing discounts on the making charges for gold jewellery. Our goal is to enable customers to make the most of this auspicious opportunity and get the best offers, particularly for the upcoming wedding season,” says Suvankar Sen, MD & CEO of Senco Gold & Diamonds.

Tanishq is currently providing a discount of up to 20% on the making charges for gold jewellery.

“Most of the jewellers, be it online or offline, offer discounts on making charges to attract customers in the festive season. Some jewellers are offering various freebies, premiums on used gold and even a chance to design a unique piece of jewellery this Diwali,” says Sachin Kothari, Director, Augmont Gold For All.

Now, comes the question of gold as an investment. In spite of gold gaining ground as a safe haven asset in times of volatility and a new war, global gold demand in Q3 2023 dropped by 6%, on reduced interest in gold bars and coins, as well as diminished demand from central banks.

As Diwali approaches, the price of gold is on the rise thanks to geopolitical tensions and the US Federal Reserve’s decision to hold on to high interest rates.

However, India, the world’s second-largest consumer of gold, is bucking the trend. There is an increase of 10% in gold demand in the same period. Globally, jewellery demand dipped by 1% on account of high gold prices. But here too, Indian jewellers hope that consumers’ love for gold demand will hold on.

Courtesy: businessinsider.in