Gold buyers wait & watch

With bullion hitting an all-time high, consumers are resorting to ordering lesser weights at weddings and are even opting for diamonds

With the price of gold crossing Rs 18,000 this wedding season, Punekars have hit upon a unique idea to buy gold. Most consumers admit that since gold is necessary for auspicious occasions, one has to invest in it.

However, they say that they are buying gold with lesser weight to make up for the extra bucks.

And contrary to the belief that people have stopped buying gold, shop owners say that there has been an increase of 10 per cent in the last one year.

Amit Jadhav, supervisor, PNG, Camp, said that buying gold is not exclusive for weddings. Gold is gifted and worn during anniversaries, festivals and several other occasions.

Less Quantity
But jewellery stores across the city maintain that consumers have cut down on the grams of gold they put in a particular jewellery set.

Sameer Shete, a marketing manager of a media firm, who is getting married next week, said, "There is no other option apart from gold, and we had to buy all the necessary items like mangalsutra, wedding set and bangles.

So we have bought sets with standard weight and avoided the heavy ones, which are not really necessary."
Harshang Zaveri, proprietor of Zaveri, admitted, "Earlier, shoppers used to go for the heavy sets to uphold their social status, but after the price of gold has hit the roof, most people invest in standard quantity. If they bought an 80 gm set earlier, they now prefer to pick a 30 to 40 gm set."

Fatehchand Ranka, President of the of the Pune Saraf Association and the Maharashtra Rajya Saraf Mahamanadal, admitted that when marriages are fixed, they settle the wedding not in terms of money but the grams of gold that will be given. He added, "But with the sudden increase in the prices, there has been a decrease in sales by 10 per cent to 20 per cent."

Bling is in
On the other hand, most consumers are investing in diamonds, as it has 100 per cent exchange value, less tax and no making charges. According to Jadhav, though the number of walk-ins are smaller, there is a growth in the number of buyers.

And not only diamonds, the demand for silver with gold plating has also gone up by 40 per cent.

Prakash Rawal, salesman, Gold Palace, said, "In the last year, we have seen an increase in the demand for designer diamonds and artificial jewellery as people now prefer wearing these pieces for festival and small parties."