Ahmedabad: Gold prices have cooled from their Jan record highs, but Gujarat’s jewellery buyers are still holding their wallets tight. Jewellers say customers are returning to stores, but most are bringing old ornaments with them rather than buying fresh gold.Gold traded at around Rs 1.6 lakh per 10g in the Ahmedabad market. Retailers said the price correction, along with easing geopolitical tensions in West Asia, has helped revive store visits after several slow months. Footfalls have risen by 10%-20% over the past few weeks, but sales have not recovered at the same pace.“Market footfalls and conversions have improved. The reduction in gold prices has encouraged customers to return to jewellery stores. Even so, nearly 80%-85% of purchases continue to be exchanges, while only 15%-20% are fresh purchases,” said jeweller Manoj Soni.Buyers, said jewellers, continue to work with tight budgets and avoid large-ticket purchases. “Customers are choosing lightweight jewellery. Wedding jewellery demand remains weak and we do not expect it to revive before Diwali,” said jeweller Rohit Choksi.Several retailers said buyers are looking at delicate jewellery weighing 20-25g, instead of heavy bridal sets. Demand has grown for 9-, 14- and 18-carat jewellery as customers try to keep costs under control while still opting for contemporary designs.“Price correction has certainly helped bring customers back. Exchanges continue to dominate sales, while fresh purchases account for barely 10%-20% of transactions. We expect demand to improve by Aug if prices remain stable,” said Ashish Jhaveri, a jeweller from Ahmedabad.Repairs and remodelling are also keeping jewellers busy. Many customers are melting or redesigning old pieces instead of spending on new gold.Investment demand, however, has stayed steady. Jigar Soni, president of Ahmedabad Jewellers’ Association, said uncertainty in global markets has kept investors interested, especially in physical silver bars and coins. Gold exchange-traded funds have also drawn buyers.Soni said lightweight gold jewellery continues to find takers among younger consumers, who prefer modern designs and lower ticket sizes.The trend also shows up in corporate updates. Titan said relatively stable gold prices helped it record double-digit buyer growth during the quarter, while gold coin sales also grew in strong double digits.
