Consumers opt for lightweight jewellery & gold coins as high prices reshape festive buying

Pune: This festive season has brought a mixed bag for the jewellery industry, as soaring gold and silver prices influence . While small and mid-sized jewellery stores in the city have reported a slight dip in sales compared to last year, larger chains are experiencing a robust festive demand, particularly for bullion. Saurabh Gadgil, chairman and managing director of PNG Jewellers expressed optimism, stating, "Festive consumption has returned in full swing, aided by slight dip in gold prices last night. Overall, we expect a buoyant Dhanteras, with growth of around 15–20% in value terms over last year." MP Ahammad, chairman of Malabar Gold & Diamonds, confirmed a positive start to their festive season, noting a 5% year-on-year increase in volumes and a significant 27% rise in value. He highlighted a growing preference for "lightweight and lifestyle-oriented jewellery, especially amongst youngsters", along with a trend towards "18K or 14K jewellery that offers price flexibility and style". Atul Sinha, chief operating officer of CaratLane, also observed "steady momentum across categories", particularly in lightweight diamond jewellery (14KT and 9KT ranges). CaratLane's festive offer of a free 0.5g gold coin on every ₹35,000 spent has further boosted customer interest. However, smaller establishments and individual buyers are feeling the pinch of . Kshama Sethye, a resident of Fatima Nagar, shared her experience of pre-booking gold when prices were lower. "We pre-booked gold when it was Rs 1,20,000/10g for delivery on Dhanteras day. Prices have crossed Rs 1,30,000/10g (including GST) today. We purchase out of tradition, so we went ahead and bought a limited amount," she said. Inder Solanki, who operates Silver and Gold Palace at Camp, reported sales on a par with last year, despite offering a "50% discount on making charges". He noted a higher demand for gold coins, especially from walk-in customers, attributing it to "higher prices deterring buyers from making bigger purchases". Mallika Sharma, from Wanowrie, echoed this sentiment. "We have only purchased gold coins because of the auspicious occasion. The high prices of gold have made quantity purchases unaffordable," she said. Pravin Palrecha, owner of Sumul Jewellers at Camp, confirmed a decline in demand compared to last year, with most orders being pre-booked and fewer walk-ins. He also observed a trend towards "1-2 gram jewellery". The cautious sentiment extended to Mumbai's Zaveri Bazaar. Anil Jain, a local jeweller, noted a shift towards "customers exchanging gold" and a departure from the tradition of buying heavy jewellery. "Now, people are sticking to lightweight gold & silver coins," he added.