Editor’s Note
This article examines the dual impact of soaring gold prices, which benefit investors while straining the jewelry trade as consumers turn to lighter-weight ornaments.
- Global uncertainty has disrupted the gold budget.
- Prices have skyrocketed in the pursuit of investment.
- The market is relying on lower-weight ornaments.
Bhopal. The continuously rising prices of gold and silver may have brought smiles to investors’ faces, but they have created a crisis for the trade. Customers are not ready to buy jewelry at high prices. Hallmark 91.6, i.e., 22-carat gold ornaments, have become up to twice as expensive in two years. People are reluctantly buying 18-carat daily-wear gold jewelry, but the market’s momentum is low.
Deteriorating relations and a war-like atmosphere between the US and some countries have sent gold prices soaring. In the international market, gold is considered the best medium for investment. People are viewing gold as superior to the dollar and rupee for investment. This is why people are buying coins and Cadbury gold for investment, but sales of ornaments are increasingly hitting the brakes.
According to traders, in 2024, the price of gold was between 70,000 to 77,000 rupees per 10 grams. Now gold has exceeded 140,000 rupees per ten grams. That means prices have doubled in two years. Making charges are levied separately on jewelry. If you buy ornaments of 91.6 purity, you have to pay about 10 percent making charges. This further increases jewelry prices.
According to traders, people are now getting lower-weight ornaments made. Previously, people would get rings, gold chains, bracelets, etc., made as a hobby, changing designs every two to three years. This trend is now coming to a halt.
According to traders, due to continuously rising prices, the demand for 18-carat gold has increased in this market. This jewelry contains 75 percent gold. Recently, the government has approved 9-carat gold jewelry. Hallmarking is mandatory on it so that customers get complete information about purity. 9-carat ornaments contain 37.5 percent gold, which is why their price is also lower, but 9-carat jewelry has not yet arrived in Bhopal’s bullion market. Silver prices are also touching the sky. The prices of silver payals (anklets), bichiyas (toe rings), etc., have more than doubled in a year. Silver has reached nearly 250,000 rupees per kilogram.
Due to the trade downturn, the sword of layoffs is hanging over the staff working in major gold showrooms in the capital. Some showroom operators have even given ultimatums to employees.
Gold Prices in Bhopal at a Glance
Carat | Purity Percentage | Price per Ten Grams
24 | 99.5 | 1,43,000 Rs
22 | 91.6 | 1,31,000 Rs
18 | 75.00 | 1,07,250 Rs
Note: Prices are as per information received from bullion traders on Monday. Making charges of 5 to 15 percent are levied separately when getting ornaments made.
– Prakash Dadlani, Vice President, Sarafa Association, Bairagarh
– Sushil Dhanwani, President, Sarafa Mahasangh, Bhopal
“Business at gold showrooms has decreased due to rising gold prices.” – Prakash Dadlani, Sushil Dhanwani