Bling no longer king in India as gold loses its shine
- 16 Aug 2020
Jewellers in the traditionally lucrative Indian gold market are struggling -- even while the metal's value skyrockets -- as coronavirus fears keep sales down, craftsmen at home and shops shuttered.
Months after India lifted its strict lockdown, the country's biggest gold market Zaveri Bazaar remains desolate, with most stores closed and no customers in sight.
"We have been running this shop for the last 40 years and I have never seen the business hit such lows," said 75-year-old Madhubhai Shah, one of only a handful of jewellers who decided to reopen.
The Mumbai market was hit hard by the March lockdown, which saw millions of migrant workers -- including many gold craftsmen -- flee India's cities as their income dried up.
Jewellery made from gold. File
"Seventy percent of our artisans have left for their villages and manufacturing units are all closed," Shah said.
And with gold prices hitting record highs after soaring around 30 percent this year, there is little incentive for customers to splash out on jewellery.
Even the impending wedding season, which traditionally kicks off in October and sees families spend a small fortune, has failed to buoy spirits or boost spending as India braces for its first recession in four decades.
Indian's gold market remains grim. File
Chiranjeevi Ahire and his fiancee decided to break with tradition for their December wedding by choosing not to buy any gold jewellery, even though it is considered auspicious and a status symbol.
"Previously we wanted the wedding to be a grand affair and follow all Indian traditions, just like our parents," the Mumbai-based marketing manager mentioned.
"But with the pandemic and uncertainty looming in the job market, we decided to cut down on our spending on gold and instead keep the money for a rainy day," the 29-year-old said.