While the pandemic seems to be readying up for a possible third wave, driven by the newly-emerged Omicron variant of the malevolent coronavirus, Indians are getting done with all the functions in what they consider a window before stringent COVID-19 restrictions kick in again. One such function is weddings.
As the restrictions relaxed, India witnessed a significant proliferation of weddings this year, especially during the last two months of the year. The curb on the control over the number of attendees of a function by the government has apparently resulted in an uncontrollable surge in the country’s gold imports, reported Bloomberg.
The rise in demand has shot up India’s gold imports, which make up for more than 86 per cent of gold supplies in the country, by as much as 900 tonnes in 2021. It is the highest in six years, according to Metals Focus Limited.
The festive season, combined with the increased number of weddings in the nation, has literally opened a gold mine for Indian Jewellers, who had to face a hard knockdown by the hammering blows of the pandemic. However, as 2021 comes to an end and weddings have started gaining back their pomp, the demand for gold has risen.
Indian weddings are the biggest source and the most influential factor when it comes to gold demand in the country. As per reports, roughly 2.5 million weddings are believed to have taken place since the mid of November. India, the world’s second-biggest bullion consumer of gold, as a result, has seen a considerable jump in import quantity.
“Lower prices and pent-up demands have helped boost sales, but we are also seeing a lot of weddings this year with some estimates suggesting that we could have a record number,” Chirag Sheth, Consultant, Metals Focus, told Bloomberg. Sheth believed that people’s faith in gold has restored. He also cites the fact that prices have slipped lucratively, which became an additional influence.
Tanya Rastogi, director, Lala Jugal Kishore Jewellers, Lucknow, said, “This time customers were looking for gold-heavy ornaments rather than stone-studded ones, which hints at the trend that jewellery is again being bought with a lot of sensitivity towards its investment value.”
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