Editor’s Note
**Editor’s Note:** Despite a significant drop in gold prices, the jewelry market remains sluggish as consumer caution stalls demand.
Gold Drops 15,000 Rupees, Yet the Jewelry Market’s Luster Has Not Returned
Badaun Express
July 15, 2026
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Ujhani-Badaun, July 15.
Despite a sharp decline in gold and silver prices over the past three months, the purchase of new jewelry in the bullion market has cooled. The falling prices have instilled a fear among customers that prices will drop further. As a result, instead of buying new gold and silver, people are focusing on melting down old ornaments to create new designs, a practice known as “palta” (exchange).
According to bullion market data, gold has fallen from its peak of ₹1.65 lakh per 10 grams to ₹1.40 lakh now—a drop of ₹15,000. Meanwhile, silver has also slipped from ₹3 lakh per kilogram to ₹2.30 lakh. Due to reduced industrial and jewelry demand, silver has recorded a decline of ₹70,000 to ₹80,000 per kilogram.
Traders say that due to increased import duties, gold and silver imports have fallen by nearly 50%. Uncertainty over prices has also kept investors on the sidelines.
In market parlance, “palta” means exchanging old jewelry for new ones. Amid inflation and fear of further price drops, this has become the safest option for the middle class. Customers are no longer buying new metal; they are simply paying making charges and GST to convert old ornaments into the latest designs.
Jewelry manufacturers say that while reduced imports have hurt business, palta has provided continuous work for local artisans.
Overall, despite the price drop, the luster of the bullion market has not returned. Traders now hope that the wedding season will boost both palta and new purchases.
Rajesh Varshney MK.
Search Keywords: Jewelry Import
