Gold Hits Rs 1.57 Lakh, Cutting Festive Sales by 15%
Gold prices jumped 60% to Rs 1.57 lakh per 10 grams, causing a 15% drop in Ganesh Chaturthi volume sales.
Key points
- Gold prices hit Rs 1.57 lakh per 10 grams, a 60 percent rise from last year's Rs 98,000.
- Ganesh Chaturthi gold sales volume dropped by 15 percent as consumers bought lighter items.
- BIS raised the hallmarking fee for gold articles from Rs 45 to Rs 75.
Gold prices in Mumbai reached Rs 1.57 lakh per 10 grams on Monday. This level marks a 60 percent increase from Rs 98,000 a year ago.
The sharp price rise caused gold sales volume to fall by 15 percent. Consumers bought less or switched to lighter jewelry pieces.
Consumers shift to lighter designs
Industry executives report that buyers are exchanging old gold for new items. They prefer lightweight pieces that serve multiple social purposes.
Retailers expect demand to recover as the wedding season approaches. Younger buyers are increasingly purchasing jewelry for personal milestones.
Bullion demand remains steady
Sales of gold coins and bars showed traction during the festival. However, total volumes remained below the levels recorded last year.
The World Gold Council notes that consumers are deferring discretionary purchases. Physical investment demand has stayed steady despite the high prices.
Hallmarking fees increase for gold
The Bureau of Indian Standards raised the hallmarking fee. The cost increased from Rs 45 to Rs 75 per gold article.
The fee for silver articles remains unchanged at Rs 35. This regulatory change was notified before the festive season began.
