Marginal demand of gold jewellery even during marriage seasons seem to have forced many jewellers and jewellery workers to shift to imitation jewellery. However, the shift is temporary in nature and industry player say that the shift will reverse as the price of gold comes down.
Firm gold prices has taken its toll on gold jewellery sales. During marriage season, a middle class family buys minimum 100 grams of gold jewellery, while the purchase surges to 400-500 grams in case of rich families.
"Normally, a single jeweller gets business for two to three kilogram gold a day. But now it has reduced to just 200-500 grams. In order to survive the hard times, many jewellers have shifted from gold to imitation jewellery temporarily", Balvantrai Badani, president, Rajkot Gold Dealers Association.
Same is the case with jewellery workers. "Out of the 10 job workers, atleast 3 to 4 have shifted to the imitation jewellery work. Many more are also planing to do the same. This is a temporary shift for us", said a Rajkot-based job worker Sandip Soni.
Rajkot houses more than 1 lakh gold and silver jewellery makers. According to Badani, around 40 per cent workers have changed their work pattern. "It is a matter of survival, you can see this in other parts of Gujarat too", he added.
In Rajkot gold was quoted Rs. 15,300 per 10 gram today. Last month gold price ranged between Rs.14,000-15,750.
“If we look at the price trend of the last 3 months, average price of gold ruled higher than Rs.15,000 per 10 gram. People are not willing to buy jewellery at this level. I can say that this time jewellery market has done zero business in the wedding season”, Badani said.