Post lockdown, gold sale regains pace

After facing a 100-day closure of business during the lockdown period, the gold business has got its mojo back. Jewellers in the city are happy as buyers are thronging showrooms as they see the yellow metal as a safe haven to park their funds.

“We have recorded a 15 to 25 per cent growth over last year,” said a CEO of a prominent brand in Chennai. Confidence has been restored and the preference of the yellow metal over realty or deposits is clearly visible. “Gold is highly liquid, safe and fetches good returns. Also, buyers have the opportunity to experience the joy of wearing jewellery unlike other instruments of investment, which typically are fraught with risks,” the CEO said, noting that the gold trade may not have seen phenomenal growth but the willingness among people to continue to buy the yellow metal has added the necessary sparkle.

Incidentally, employees in the gold trade have been awarded annual increments, Deepavali bonus and incentives, indicating that the sheen is back in full flow. With travel hit and job losses not as much now than during the lockdown phase, the money availability has allowed people to consider gold as a favourable choice as it inculcates the savings habit too. This is reflected in young customers, who typically prefer light-weight jewellery, who have started buying gold which is note-worthy, the person added.

According to Jayantilal Challani, president, The Madras Jewellers and Diamond Merchants Association, post lockdown, the last nine months have seen business equal to one year. Apart from saving, the customers’ mentality now is to “live life joyfully and make the most of it by having a luxurious lifestyle.” While the back to back lockdown had forced the business firms to close shutters in capital Chennai, the stores selling gold, silver and diamond jewellery had not only withstood the pandemic onslaught, but several jewellery outlets had mushroomed in 2021, confirmed a Chennai Corporation official source.

Sources with Chennai Corporation also confirmed that the jewelers were paying their property taxes on time.

The drop in real estate boom along ECR and OMR had also increased the customers to rely on gold as a long term investment, explained a source with Tanishq jewellery store. Though marriages had restrictions on gatherings, it never had any impact on buying jewellery, explained K Shankar, a goldsmith who caters to stores in Parrys and T Nagar.