dheeraj.bengrut@htlive.com
Pune - Following Prime Minister Narendra Modi’s appeal that “people should avoid buying gold for any household function throughout the year,” discussions have intensified in bullion markets across the country. While speculation suggests the statement could impact gold sales, jewellers and bullion traders in Pune have currently adopted a “wait and watch” approach. Traders say that although global tensions in Gulf countries and soaring gold prices had already reduced consumer demand, the Prime Minister’s remarks have further added to uncertainty in the jewellery market.
A noticeable slowdown has been reported in jewellery shops in the city, where traders say customer footfall has slightly dropped despite the ongoing wedding season, annual fairs, and pilgrimages. Traditionally considered one of the busiest periods for gold purchases, the current season has instead seen quiet showrooms and reduced sales activity. Traders claim that many customers are postponing purchases amid rising prices and confusion surrounding the Prime Minister’s statement.
However, Abhay Gadgil, vice-president of the Pune Jewellers Association, differed. “There will not be any major impact on our jewellery business because gold has a deep cultural connection in Indian society. At present, gold prices have stabilised and customers still consider gold a safe investment. It also offers good returns over time. There is no confusion among traders and we believe people will continue to purchase gold, especially during weddings and traditional occasions,” Gadgil said.
Nevertheless, several jewellers criticised the Prime Minister’s appeal, arguing that it overlooks the livelihood concerns of workers associated with the industry. “Gold traders may somehow survive, but how will artisans live? Also, gold jewellery often becomes financial support during emergencies for ordinary families,” said Kapil Oswal, a jeweller from Pune.
{{/usCountry}}Nevertheless, several jewellers criticised the Prime Minister’s appeal, arguing that it overlooks the livelihood concerns of workers associated with the industry. “Gold traders may somehow survive, but how will artisans live? Also, gold jewellery often becomes financial support during emergencies for ordinary families,” said Kapil Oswal, a jeweller from Pune.
{{/usCountry}}Speaking on behalf of the All India Jewellers Association, spokesperson Kumar Jain, too, echoed similar concerns. “What will happen to the nearly three crore artisans who support their families through this trade?”Jain asked.
For now, most bullion traders believe the coming weeks will determine whether the Prime Minister’s remarks lead to a temporary sentiment-driven slowdown or have a long-term impact on consumer behaviour in India’s gold market.