The India Bullion and Jewellers Association (IBJA) has projected the festive gold sales volume in India. They don’t project it to go up at all over last year. This projection suggests that about 40 metric tons of gold will be sold across the country in the coming festive season. The IBJA’s forecast is a tacit acknowledgment that even with stabilized high gold prices, the deeply felt effects on consumer purchasing have shifted the buying dynamic.
Traditionally, the festive season in India sees a significant uptick in gold purchases, as families celebrate various rituals and weddings. Yet this year, IBJA is forecasting sales volume to be in line with last year’s numbers, indicating a more cautious stance among buyers. As gold prices stay at an all-time high, consumers are choosing which gold to buy and when.
In August 2023, a significant milestone underscored this change in the market. One woman went out to purchase jewelry for her son’s wedding. This decision demonstrates her new-found enthusiasm for gold, despite these heavy-handed measures still being in place. As this example shows, personal milestones often drive purchases, aided by a barnburner of an economy.
The IBJA’s estimation is a reflection of a bigger trend of pulsating consumer mood with regard to gold purchases on festive occasions. Families across generations invest in gold, seen as a harbinger of good fortune. A tightening economic environment has caused many to reconsider how they’re spending their dollar.