Sales of hallmarked gold coins and bars surge 35-80% on e-commerce platforms

Both traditional legacy brands and new age ventures report year-on-year increase in sales 

Mumbai: Sales of hallmarked gold coins and bars, both 22K and 24K, have experienced a remarkable surge of 35%-80% in India’s e-commerce sector, signaling a significant shift in consumer behaviour from traditional retail stores to online platforms such as Amazon and Flipkart. This trend is anticipated to continue, especially as the festive season approaches. 

The increase in online sales, noted across marketplaces such as Amazon, Flipkart, Ajio, and Tata Cliq, reflects a growing preference for gold products that have traditionally been purchased in-store, according to industry executives. 

Major jewellers Malabar Gold & Diamonds, Kalyan Jewellers, MMTC-PAMP, and Joy Alukkas are now offering 22K and 24K gold coins and bars, ranging from 1 to 10 grams, through online channels. Zeba Khan, Director of Fashion and Beauty at Amazon, reported an impressive 84% year-on-year increase in sales of hallmarked gold jewellery from brands such as Malabar Gold & Diamonds, PN Gadgil Jewellers, and Joyalukkas. 

To prepare for the expected demand during the festive season, particularly around Dhanteras and Diwali, e-commerce platforms are increasing their inventory. Amazon is also expanding its offerings to include lab-grown diamond jewellery. Investment interest in gold bars and coins is on the rise, fueled by current high prices, with gold trading at Rs. 76,768 per 10 grams as of Monday. 

Sachin Jain, Regional Chief Executive for India at the World Gold Council, noted that in the June quarter, sales of gold bars and coins rose by 46% in volume, reaching 45 tonnes, and by 75% in value. Jain expressed optimism for Q3 and Q4, citing ongoing geopolitical tensions, potential interest rate cuts by the Federal Reserve, and overall economic uncertainty as factors that are likely to sustain investment demand for gold in the near term. 

The Kerala-based Muthoot Pappachan Group, which sells gold coins and bars through its own platform as well as e-tailers such as Amazon and Coin Bazaar, is also expecting robust sales this festive season.

Retail Jeweller India News