Gold’s enduring allure remains undisputed, yet soaring retail prices have reshaped consumer behavior in the jewellery market.
The cost of 24-carat gold coins and fine jewellery has surged dramatically-in just two years, an 8-gram 24-carat gold coin rose from approximately Rs.
55,000 to over Rs. 83,000, while jewellery prices are further inflated by 25-30% making charges. This steep escalation has made purchasing new high-value gold jewellery less accessible for many women, prompting a growing preference for exchanging old gold instead of buying new pieces.
This trend reflects a strategic shift: rather than investing in costly new items, consumers are opting to recycle their existing gold assets to maximize value and affordability.
The premium charged on new jewellery, combined with record gold prices, has led to a decline in new gold jewellery purchases globally, even as the value of gold consumption rises. In markets like India, this has also encouraged a move from 22-karat to 18-karat gold jewellery, balancing purity with cost-effectiveness.
The preference for exchanging old gold not only preserves the sentimental and financial worth of gold but also aligns with a more sustainable and economical approach to luxury.
As gold prices continue to set new records, consumers are increasingly cautious, favoring lighter, more affordable pieces or repurposing their existing gold holdings to stay stylish without compromising on investment value.
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