PM Modi’s statement on gold buying sparks concern among jewellers

Bullion traders say the coming weeks will determine whether the PM's remarks lead to a temporary sentiment-driven slowdown or have a long-term impact on India's gold market.

Several jewellers criticised the PM's appeal, arguing it overlooks livelihoods of workers in the industry. Kapil Oswal noted that while traders may survive, artisans still need support, since gold jewellery often becomes financial help during emergencies. Kumar Jain, spokesperson for the All India Jewellers Association, echoed concerns about the nearly three crore artisans who depend on the trade for their family's livelihoods.

Abhay Gadgil, vice-president of the Pune Jewellers Association, said there will not be a major impact on jewellery business, citing gold's deep cultural connection in Indian society, stabilised prices, and the perception of gold as a safe investment; he noted there is no confusion among traders and that demand will continue during weddings and traditional occasions.

In Pune, jewellers and bullion traders have adopted a 'wait and watch' approach. Traders report a noticeable slowdown and slightly reduced customer footfall despite the ongoing wedding season, annual fairs, and pilgrimages, with some customers postponing purchases due to rising prices and the PM's remarks.

Following the PM's appeal, discussions intensified in bullion markets across the country, with speculation that the statement could impact gold sales.

Prime Minister Narendra Modi appealed that 'people should avoid buying gold for any household function throughout the year'.