Big news for gold buyers! Why are people doing this work by leaving cash? you will be shocked to know

The continuously rising prices of gold in the country has not only affected the pockets of the common people but has also completely changed their shopping habits. Now a unique trend is being seen in the market. People are now preferring to buy new jewelery by exchanging the old jewelery kept in their homes instead of spending cash to buy new gold. According to information received from jewelery traders, there has been a huge increase of about 60% on an annual basis in the cases of purchasing new jewelery in exchange for old gold. Experts believe that skyrocketing gold prices, import duty and economic uncertainty in the market are rapidly promoting this new trend.

Big change in the business of big jewelery brands

According to a report by Economic Times (ET), Joy Alukkas, Chairman of the country’s well-known jewelery retail chain ‘Joyalukkas’, has said a big thing on this change. He said that the share of ‘Gold Exchange Program’ in the total sales of the company has now increased to 65%, whereas earlier this figure used to be only between 40 to 45%. He even said that in some days, up to 70% of the company’s total business becomes the source of exchange of old gold only.

On the other hand, Ramesh Kalyanaraman, Executive Director of ‘Kalyan Jewellers’ has also confirmed this trend. He told that the share of sales through exchange in his company has increased from 30% to 40-45% now. Keeping in mind the appeal of the Prime Minister, Kalyan Jewelers has also run a special ‘Gold Exchange Campaign’, due to which the customers are getting a lot of benefits.

Why were people forced to exchange old gold?

Experts associated with the jewelery industry say that this trend has become stronger after the government increased the effective import duty on gold and the sharp rise in gold prices in the market. If we look at the data, on Thursday the price of 24 carat gold reached the level of around Rs 1.56 lakh per 10 grams, whereas exactly a year ago the same gold was available at the price of around Rs 1 lakh per 10 grams. In such an expensive environment, buying new jewelery using the current value of old jewelery has become the easiest, convenient and cost-effective option for customers.

Gold kept in Indian homes is changing the fate of the country!

India is counted among the world’s largest gold consumers. According to an estimate, Indian families have about 25,000 tonnes of gold in their homes. Surendra Mehta, National Secretary of ‘India Bullion and Jewelers Association’ (IBJA), says that these gold exchange programs are helping a lot in bringing the unused gold lying in homes back into the market.

A major benefit to the country from this change will be that India’s dependence on new gold imports can be reduced. India imports about 900 to 1,000 tonnes of gold from abroad every year. In such a situation, re-use or recycling of old gold within the country can prove beneficial for the entire economy.

‘Tanishank’ also gained momentum, will change the entire structure of jewelery market

‘Tanishq’, one of the most trusted and biggest jewelery brands of the country, is also promoting gold exchange these days. According to Arun Narayan, CEO of Titan Jewelery Division, in the last eight months alone, about 4.4 lakh customers have visited Tanishnk’s stores and exchanged 10 tonnes of gold.

Market experts clearly believe that if gold prices remain at this high level, then this craze for gold exchange may increase further in the coming months. This may change the entire structure of the jewelery business in the coming times, where recycling of old gold will play the biggest and main role as compared to new purchases.