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Amid heightened global geopolitical tensions and economic uncertainty, jewellers say gold and silver prices continue to surge, driven by strong demand and metal shortages in international markets.
According to market experts, the ongoing shift by several countries from dollar reserves to metal-backed assets has further pushed precious metal prices upward. A local jeweller said, "There is a clear divide between major global economic blocs -- one pushing a petro-dollar model and the other moving towards a metal-based economy. Many countries have converted their dollar deposits into gold. This has increased the demand, and now even international deliveries are being postponed due to metal shortage." Jewellers noted that silver recently touched Rs 4.20-4.25 lakh per kg, while gold climbed to nearly Rs 1.85 lakh per 10 grams. On Tuesday, prices corrected slightly, with gold hovering around Rs 1.70 lakh, and silver around Rs 3.60 lakh. However, they maintain that this fluctuation is normal and the long-term trend remains upward. Over the past few years, gold has more than doubled, while silver prices have risen nearly four times. Despite the sharp rise in rates, domestic demand remains broadly steady. Jewellers say the price surge is purely driven by global factors. "Whatever geopolitical decisions or economic actions take place globally, their immediate impact is seen on gold and silver. India depends heavily on imports, so price control is not in our hands," a jeweller added. The high price levels have significantly changed buying patterns. Jewellers report that only 25 per cent of sales now come from new purchases, while 80 per cent of customers opt for an exchange. "People are bringing old jewellery or coins and exchanging them for new ornaments. Fresh buying has reduced sharply. In wedding purchases too, customers are upgrading old pieces instead of buying entirely new ones," the jeweller said. With prices ruling high, demand for lightweight jewellery has increased, especially for machine-made designs. However, jewellers say low-karat pieces such as 9K, 12K, or 14K are difficult to produce in handcrafted wedding jewellery, though feasible in machine-made daily-wear pieces. Jewellers believe the upward momentum may continue in the coming months. "Looking at global conditions, gold could move towards Rs two lakh per 10 grams, and silver may reach Rs 4.5 to Rs 5 lakh per kg," they estimate. They add that the current situation indicates continued reliance on precious metals amid global economic instability. (ANI)
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