What's holding back gold buyers this Diwali? Let's find out

With Diwali approaching the price of gold is on the upswing and many are wondering if its a good time to invest in the precious yellow metal Gold prices have risen amid geopolitical tensions in the Middle East and speculation of the US Federal Reserve keeping interest rates high Experts believe gold has shown a promising upturn post the GazaIsrael conflict supported by robust domestic demandSoaring prices take a toll on jewellery makers business declinesJewellery companies and makers are rattled by the skyrocketing prices of gold and the drop in demand due to a sharp rise in gold prices during the festive seasonJewellery maker from Girgaon Vikas Mirkarrsquos business is seeing an alltime low We have been running the shop for more than 125 years My father started this business and now I am running it For the last two to three years the gold business has suffered a lot It is down by 20 to 50 per centrdquo he notedMirkar further said that earlier people invested in gold but now due to the rise in gold prices they think twice before buying gold items But he also acknowledged that the people do see it as an investment Even though the gold market is struggling due to the rise in prices we do see new jewellery shops open now and then This shows that people still are buying gold Mirkar saidEchoing similar sentiments Nitin Karekar who has been making jewellery for more than 45 years said that buyers are confused about whether to buy gold or not due to the skyrocketing prices People wait till the rates stablise or reduce after which they buy gold or gold items With Diwali just around the corner the business is still down Nowadays people tend to buy less gold and make lightweight items from it For instance earlier people used to buy 10 gram gold chain now people want the gold in six or eight grams he sharedThe business was down before the Covid19 pandemic but now itrsquos affected more Almost 15 years ago the business was good and now itrsquos down by 50 per cent People are still buying gold but in lesser quantity and fewer items Karekar saidJewellery shop owners woo customers for Dhanteras amid upsurge in gold pricesShedding light on price rise Sanjay Banka CFO of Senco Gold amp Diamonds said We know that Gold is considered as a safe haven in times of geopolitical uncertainty and forms a key part of peoplersquos portfolios as it acts as a hedge against inflation and war The festive season in India is also going to be accompanied by the wedding season coming up in NovemberDecember Some customers expect that gold prices may increase further if the war continues so they are making their purchases nowWe introduced Flexi Gold Rate plan customers at the beginning of October If gold prices fall further on Dhanteras day consumers would get to buy at the lower rate and if prices appreciate they can avail of the lower lockedin gold price We are seeing a good demand ahead of Dhanteras and footfalls at showrooms have been good driven by such consumerfriendly initiatives At an industry level we are hopeful that there will be growth of 10 to 12 per cent this Diwali compared to last year Banka saidWhen asked if they are facing the brunt of inflated gold prices Sanjay Banka said West Bengal is a prominent jewellery manufacturing hub in east India reputed for lightweight and handmade jewellery The karigars of the state are skilled and known for their craftsmanship and we have a strategic advantage in being headquartered in Kolkata with strong and established relationships with the artisans Moreover the funds raised from our IPO in July have helped us stock up our showrooms with adequate inventory and we are all geared up for a bumper DhanterasAhead of Diwali Senco Gold amp Diamonds has introduced special offers for buyers We have a host of special offers for our customers up to 25 per cent off on making charges of gold jewellery only rupee one making charge on diamond jewellery and up to 8 per cent off on diamond value for diamond jewellery We have also launched an array of designs and jewellery pieces under the Shagun Collection which is under Senco Gold amp Diamondsrsquo Vivaha 24 Collection offering a range of exquisite pieces for all occasions from contemporary lightweight to royal traditional designs ranging from Rs 50000 to Rs 150000 The Lotus Collection by Everlite is inspired by the motifs of Lotus with enamel and meenakari work signifying auspiciousness and prosperity and blessings of Goddess Laxmi for Dhanteras and Diwali The Signature Collection was inspired by the Sencorsquos logo created with motifs of swan and lotus representing the serenity and blessings of Lakshmi Puja Sanjay Banka addedCheck gold pricesGold price declined Rs 350 to Rs 61700 per 10 grams in the national capital on November 1 amid weak global cues according to HDFC SecuritiesIn the previous trade the precious metal had closed at Rs 62050 per 10 grams Silver also tumbled Rs 1200 to Rs 74300 per kilogramMeanwhile the closing price for 999 purity gold was Rs 61012 per 10 grams while that of 999 purity silver was Rs 70984 per kg the data available on the India Bullion and Jewellers Associationrsquos IBJA website showedIn the international markets both gold and silver were trading lower at USD 1978 per ounce and USD 2255 per ounce respectively