**Tamil Nadu’s Middle-Class Families Face Challenges in Purchasing Gold Due to Rising Prices**
The gold prices have been on a surge in recent times, leaving many middle-class families in Tamil Nadu with a difficult decision to make. The tradition of gold investment, particularly during weddings, is deeply ingrained in the culture of this region. With upcoming wedding seasons in May, June, and July, many families are adopting a cautious approach, and jewellers are making lucrative offers to attract customers.
**Jewellers Offer Lighter Jewellery and Value-For-Money Deals**
Jewellers on the other hand are making offers like lighter jewellery and full value for old jewellery, among other incentives. On Friday, the price of gold stood at ₹9,765 per gram (24 KT), making a sovereign (8 grams) worth ₹78,120. V. Shantha, whose daughter is set to marry next month, expressed her concerns about the rising prices. “We had committed to gifting her 21 sovereigns at ₹6,800 per sovereign, but now with the increase in price, we are finding it difficult to fulfill it,” she said.
“We have now informed our daughter that we will deposit money into her account instead,” Ms. Shantha adds. “This is not a dowry but a gift that we had promised her daughter.”
“We have now informed our daughter that we will deposit money into her account instead,” Ms. Shantha adds. “This is not a dowry but a gift that we had promised her daughter.”
K. Priyadarshini, a receptionist at a private firm, also shared her concerns about the fluctuating prices. She suggested receiving cash instead of gold due to the price variations. “My father had discussed the wedding jewellery with me, and I had suggested receiving cash instead of gold due to the fluctuating prices,” she said.
**Consumers Adopt Cautious Approach, Jewellers Offer Flexible Payment Plans**
While consumers remain cautious and adopt a wait-and-watch approach, jewellers assert that gold remains a reliable investment and a safe choice. Temporary phenomena of price hikes and fluctuations are expected to subside with the festive season approaching. The Akshaya Tritiya season is expected to bring a surge in gold sales.
- Smaller players in the industry believe that middle and lower-income groups will purchase only if there is a need.
- The bigger players in the industry say that this is just a temporary phenomenon and the festive season will be strong.
G.R. ‘Anand’ Ananthapadmanabhan, Managing Director of GRT Jewellers, pointed out that the focus is now more on light-weight jewellery. “When I say light-weight, a gold item that can be made for two sovereigns can also be made with 1-1.5 sovereigns,” he said. Sachin Jain, Regional CEO, India, World Gold Council, noted that gold prices have hit an all-time high. However, the middle-class segment is still purchasing lighter-weight pieces of gold jewellery, making it affordable for them to fulfill their aspirations of owning and wearing the yellow metal.
**Jewellers Offer Flexible Payment Plans and Rate Protection**
Kalyan Jewellers has exchange offers, allowing customers to bring in their old gold jewellery and upgrade to newer designs. Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, shared his views on the upcoming Akshaya Tritiya. “Customers can secure rate protection through our advance booking scheme by paying just one-fourth of their intended purchase amount upfront. This allows them to lock in current prices and safeguard against future price increases.”
**Customers are now more aware of gold purity options and are open to 14kt and 18kt jewellery that is affordable, durable, and stylish,” said Shyamala Ramanan, Business Head – Mia by Tanishq. Despite fluctuating sentiments, jewellers are optimistic that sales will be good during Akshaya Tritiya. Retailers have all stocked up and are expecting a bumper buying this year, said Mr. Jain.
**A New Era in Gold Purchasing**
With gold prices on a surge, consumers are adopting a cautious approach. Jewellers are making offers to attract customers, and flexible payment plans are becoming increasingly popular. As consumers become more aware of gold purity options, they are opting for lighter-weight pieces of gold jewellery, making it affordable for them to fulfill their aspirations of owning and wearing the yellow metal.
With gold prices on a surge, consumers are adopting a cautious approach. Jewellers are making offers to attract customers, and flexible payment plans are becoming increasingly popular. As consumers become more aware of gold purity options, they are opting for lighter-weight pieces of gold jewellery, making it affordable for them to fulfill their aspirations of owning and wearing the yellow metal.
