Gold Price: Gold sets a record, yet why is the price of gold still competing? Read the report..
Gold prices are currently at record levels. This increase wasn't immediate. Gold prices have been rising for the past several months. Gold prices have already risen by about 55% this year, leading to a significant increase in demand for gold. However, in the past two weeks, there has been an increase in demand for gold jewelry. Experts believe that the public has accepted that gold prices aren't going to decrease anytime soon. Consequently, many parts of the country have switched from 22-carat gold to 18-carat gold jewelry. However, in South India, 22-carat gold remains in high demand. Let's explain what the report says.
Prices are not expected to fall.
Ajay Chawla, CEO of Tata's Tanishq, the country's largest jewelry chain, said in an ET report that after a four-month lull, demand for gold and gold jewelry has been increasing in the past two weeks. Consumers have realized that high prices aren't going to come down anytime soon. Chawla said consumers have started buying gold as there's no hope of a price drop. He added that the last two weeks have seen strong buying, after a gap of nearly four months. Chawla will take over as MD of Titan Company, Tanishq's holding company, from January 2026. According to the India Bullion and Jewelers Association (IBJA), gold demand this Dussehra declined by 25 percent compared to last year to 18 tonnes due to the continued rise in gold prices. However, the value has increased due to the increase in prices.
Higher demand for 18-carat gold
Gold prices have increased by 13.44 percent in the past month. According to IBJA, the price of gold on Tuesday was Rs 1,19,967 per 10 grams. With 3% GST, consumers will have to spend Rs 123,567 for 10 grams of gold. Chawla told ET that Tanishq is seeing good demand for 18-carat jewelry among customers, with North India leading the way, followed by the East and West. However, consumers in the South still prefer 22-carat jewelry. Chawla said, "We expect the third quarter (October-December) to be good. We cannot provide any figures right now. We always aim for higher prices."
Exchange Program
Tanishq is also betting on an exchange program for old gold. Chawla said, "About 25,000 tonnes of gold is lying idle in the lockers of Indian families. We are trying to extract some of this to reduce dependence on imports and narrow the trade deficit at a time when high US tariffs are creating problems." Over the past few years, more than 3 million Indians have participated in Tanishq's gold exchange program and recycled approximately 1.7 lakh kg of gold. 40% of the company's business now operates through this exchange program. Chawla said that rising gold prices have also boosted investment demand for the precious metal. He said that gold prices have increased by 50% over the last year. Therefore, people now recognize it as an important asset class. It acts as a hedge in uncertain times, and hence people are investing in gold coins.
Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
