KOLKATA: The wedding season currently underway and the festive season late last year have combined to push up demand for gold in Kolkata by almost 20%. According to associations of jewellers and individual brands, the surge this season has been the best, not only after the pandemic but also in the last one and a half decades.
Gold, already a favourite at weddings, has also become an attractive investment option for many, thanks to its rising price.
“Our industry data shows the demand is up by almost 20% this season. The festive season last year along with the wedding season and some other occasions has boosted the demand,” said Pramod Dugar, president of India Bullion and Jewellers Association (West Bengal). The gold prices have increased by almost Rs 16,000 (for every 10 grams) compared to the pandemic and have more than doubled in the last 10 years.
The wedding season commenced in mid-Nov last year and is going to continue till March. More than 50,000 marriages have been solemnized in Kolkata and its suburbs this season alone.
“The response for the marriage season started in Nov, Dec and continued in Jan and Feb. We have seen an almost 20% growth in terms of value. This wedding season shall continue till March. Those who need to buy will do so. It has helped the sales of diamond jewellery when it comes to gifting and anniversaries,” said Suvankar Sen, MD and CEO, Senco Gold & Diamonds.
“Gold prices going up might just deter the customers in the short run, but in the long run consumers’ faith in the product will remain strong. This bullish trend shall continue through April, May, June till Akshay Tritiya,” said Shubadip Roy of Bengal Jewellers.
The swing in sales started during Diwali and Dhanteras in Nov last year. Several communities consider it auspicious to purchase metals, mainly gold and silver, during the Dhanteras and Diwali period to usher in financial luck.
“Despite the rise in prices people have been purchasing gold for weddings and festivals,” said Keshav Bhatter, director of Bhatter Silver and Jewels Private Limited on Camac Street.
Many individuals and families are also buying gold as a form of investment. “Gold is an effective hedge against inflation and is more liquid in comparison to real estate and other instruments which come with a lock-in period. In the past five years gold prices have touched an all-time high several times, making it an attractive investment option for many,” said Sanjay Lodha, who heads a personal finance advisory firm.
