New Delhi: A sharp correction in gold and silver prices is offering India’s jewellery industry a timely reprieve ahead of Karva Chauth, Dhanteras and Diwali, with jewellers reporting renewed buying interest after weeks of elevated prices weighed on consumer sentiment.Gold and silver prices have corrected sharply just weeks before Diwali, offering some relief to festive buyers. Between October 16 and October 27, the IBJA benchmark price of 24-carat gold fell by nearly Rs 5,000 per 10 grams to Rs 1.41 lakh, while silver dropped by over Rs 18,400 per kg to around Rs 1.92 lakh.The correction comes after a challenging festive-season run for jewellers. ETRetail earlier reported on how surging gold prices were weighing on jewellery sales, prompting consumers to opt for lighter pieces and more affordable designs.The latest price movement could now bring some of that deferred demand into the market.”We saw fantastic momentum over the weekend as footfalls picked up significantly across our showrooms, with gold sales gaining strong traction,” said Ramesh Kalyanaraman, executive director, Kalyan Jewellers.The correction is giving customers greater confidence to proceed with purchases planned around Karva Chauth and Dhanteras, he said. The company is also offering lightweight and 18-karat collections, while its quick-commerce partnerships enable 10-minute doorstep delivery of 24-karat, BIS-hallmarked gold and silver coins. Gold-rate protection schemes are helping address customer concerns around price volatility, he added.Suvankar Sen, managing director and CEO of Senco Gold, said the correction could encourage consumers who had been waiting for a more favourable buying opportunity. The company is optimistic about achieving more than 20 per cent growth during the festive month compared with last year.Natural diamond jewellery, particularly everyday-wear pieces, is growing at 25-30%, Sen said. Senco is also offering advance-booking schemes that allow customers to lock in prices, subject to terms and conditions, helping them plan purchases amid market volatility.More value, not necessarily more spending
The correction may improve what consumers can buy within an existing budget rather than trigger a sharp increase in spending.Gaurav Singh Kushwaha, founder, managing director and CEO of BlueStone, said price movements typically influence the timing of a purchase more than the underlying decision to buy jewellery.“A price correction helps sentiment more than it helps arithmetic,” he said, adding that customers generally shop with a fixed budget rather than a target weight of gold.Lower prices could allow them to choose a better design or a more substantial piece without increasing their planned expenditure. Dhanteras purchases, which tend to be more gold-led and higher-ticket than Karva Chauth purchases, could see a more visible benefit from the correction, he said.Designs and affordability remain keyJewellers are also relying on a wider range of price points to convert renewed interest into sales.At CaratLane, co-founder and CPTO Gurukeerthi Gurunathan said lightweight diamond pieces, studded jewellery and solitaires are seeing strong traction, reflecting consumers’ preference for versatile, everyday-wear designs.The company has introduced nine festive collections and more than 5,000 new designs, while consumers are increasingly browsing and shortlisting online before visiting stores, he said.Senco’s traction in everyday-wear natural diamond jewellery points to a similar shift towards versatile designs, even as gold and silver prices influence near-term buying decisions.Silver could also benefit from improved affordability, particularly in festive gifting. Kalyan Jewellers expects the metal to draw renewed interest for traditional purchases and gifts.The key test for the industry will be whether the correction translates into sustained sales volumes and higher store conversions through Dhanteras and Diwali.Saptadeep Paul from ETRetail contributed to this story.
