Mumbai Jewellers Adapt to PM Modi's Call for Gold Repurposing
Old is gold again | Jewellers across Mumbai react to PM's gold re-purpose call
Hindustan Times
Image: Hindustan Times
Following Prime Minister Narendra Modi's call to repurpose heirloom jewellery amid rising gold prices and increased customs duties, many families in Mumbai are opting to redesign old pieces instead of purchasing new gold. Jewellers report a significant decline in new gold sales, with a surge in requests for repurposing existing jewellery.
- 01The Indian government raised customs duty on gold and silver from 6% to 15% to manage foreign exchange amid the US-Iran crisis.
- 02Jewellers in Mumbai have reported a sharp decline in new gold purchases, with many customers now focused on repurposing heirloom jewellery.
- 03Vinod M Parmar from VD Gold noted that less than 10% of customers are buying new gold, with most coming in for repurposing.
- 04Prakash Takhtani from MG Sons Jewels mentioned that while they are trying to reduce making charges, repurposing often requires more labor, making discounts challenging.
- 05The impact of Modi's statement on the gold market may take time to fully assess, especially as May is typically a slow month for jewellery sales.
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In response to Prime Minister Narendra Modi's appeal to repurpose heirloom jewellery, many families in Mumbai are shifting their focus from purchasing new gold to redesigning existing pieces. This change follows the government's increase in customs duty on gold and silver from 6% to 15% to curb imports and conserve foreign exchange amid the ongoing US-Iran crisis. As a result, jewellers across the city are witnessing a significant drop in new gold sales. Vinod M Parmar from VD Gold in Dadar reported that fewer than 10% of customers are now buying new gold, with most opting for repurposing instead. Prakash Takhtani from MG Sons Jewels in Khar West noted that while they are attempting to lower making charges, the labor involved in redesigning old jewellery often leads to higher costs. He emphasized the sentimental value many customers attach to their old gold, which continues to drive repurposing requests despite the challenges posed by increased costs. The long-term effects of Modi's statement on the gold market remain to be seen, particularly as the month of May is generally slow for jewellery sales.
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The increase in customs duty and the shift towards repurposing jewellery could affect local jewellers' sales and the choices of families regarding gold purchases.
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