Rising gold prices drive Indians into jewellery recycling
For the past four weeks, gold prices have been rising sharply all over the world due to a number of factors, such as central banks purchasing the precious metal, geopolitical concerns, and a dismal macroeconomic climate.The yellow gold has been trading between ?71,500 and ?72,500 in India. Due to a decline in domestic demand brought on by the rising price of gold, Indians are choosing to recycle their old jewellery during the holiday season.Through a variety of gold investment products, we have observed an increase in the demand for gold investments in India. Before the summer wedding season and the auspicious Akshaya Tritiya, when demand for jewellery and coins tends to remain stronger, gold prices have increased by approximately 8.70 percent CYTD, according to Tapan Patel, fund manager-commodities at Tata Asset Management. The demand for retail jewellery in India may be impacted going forward by the record-high gold prices since customers may decide not to purchase at the current pricing. Given the lower demand and the weaker rupee, India's imports of gold may be impacted in the upcoming months as well," he noted.
