Concerns Rise Among Jewellers Following PM Modi's Gold Buying Statement
PM Modi’s statement on gold buying sparks concern among jewellers
Hindustan Times
Image: Hindustan Times
Prime Minister Narendra Modi's recent appeal to avoid gold purchases has sparked concern among jewellers and bullion traders in Pune, Maharashtra, India. While some traders believe the cultural significance of gold will sustain demand, others worry about the impact on livelihoods in the industry amid rising prices and reduced consumer footfall during the wedding season.
- 01PM Modi's statement may impact gold sales in India.
- 02Jewellers in Pune report a slowdown in customer footfall despite the wedding season.
- 03Some traders believe gold's cultural significance will maintain demand.
- 04Concerns raised about the livelihoods of artisans and workers in the gold industry.
- 05Future weeks will reveal the long-term effects of the Prime Minister's remarks.
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Prime Minister Narendra Modi's recent statement urging people to avoid buying gold for household functions has raised concerns among jewellers and bullion traders in Pune, Maharashtra, India. Traders report a noticeable slowdown in customer footfall, particularly during the wedding season, which is typically a peak time for gold purchases. While global tensions and rising gold prices had already dampened consumer demand, Modi's remarks have added to the uncertainty in the market. Abhay Gadgil, vice-president of the Pune Jewellers Association, believes that gold's deep cultural connection in Indian society will mitigate any major impact on sales. He asserts that customers still view gold as a safe investment. However, jewellers like Kapil Oswal express concern for the livelihoods of artisans, questioning how they will cope without sales during this critical period. The All India Jewellers Association has echoed these worries, emphasizing the importance of gold trade for nearly three crore artisans. As traders adopt a 'wait and watch' approach, the coming weeks will be crucial in determining whether Modi's statement leads to a temporary slowdown or a lasting change in consumer behavior.
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The Prime Minister's statement could lead to reduced sales for jewellers, affecting the livelihoods of artisans and workers in the industry.
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