Demand for jewellery and gift items has picked up ahead of Rakshabandhan, despite gold prices being nearly 55% higher than a year ago and silver more than doubling.

Jewellers said the recent correction in precious-metal prices had improved buying sentiment.

Consumers are increasingly opting for silver rakhis, coins and lower-carat, lightweight jewellery.

Gold prices climbed to Rs 1.7 lakh per 10 grams in Ahmedabad on Monday, against Rs 1.02 lakh on Rakshabandhan last year. Silver was around Rs 2.45 lakh per kg, compared to Rs 1.17 lakh a year ago.
Both metals, however, are well below their Jan peaks. Gold had touched Rs 1.81 lakh per 10 grams on Jan 29, while silver had peaked at Rs 3.65 lakh per kg.

“Demand is particularly strong for gold and silver rakhis, coins and gift articles priced up to Rs 5,000. Consumers are increasingly looking at jewellery as a Rakshabandhan gift,” said Jigar Soni, president, Jewellers’ Association of Ahmedabad.

In the jewellery segment, 9-carat and 14-carat gold, along with lab-grown diamonds, are becoming more popular. Lightweight chains weighing up to 2 grams, rings and other everyday jewellery are also in demand.

Courtesy: TOI