Skyrocketing gold prices hit jewellery sales in Bengaluru

Bengaluru, 

Bengaluru’s jewellery traders are witnessing a sharp decline in customers after gold prices surged following the Union government’s decision to hike customs duty to 15 per cent. The price of the yellow metal rose to just above Rs 16,000 per gram from around Rs 15,000 over the past few days. Jewellers across the city said the steep rise in prices has severely affected demand, with many customers postponing purchases.

Vijay of Shanti Jewellers in BTM Layout said footfall had dropped sharply. “Hardly anyone is coming into the shop now. Purchases have reduced because the rate is too high. We have stock, but there is no plan to push sales at the moment,” he said. Traders also noted an increase in customers selling gold to take advantage of the high prices.

Junaid, a jewellery shop owner in Shivajinagar, said many people were choosing to encash their ornaments to meet expenses. “People have school fees and household expenses to manage. Since the rates are high, they are making a good profit by selling gold,” he said. A representative of Bhagyalakshmi Jewellers in BTM Layout said customers had become more cautious about buying gold. “People are not coming in to buy. Instead, many are selling because the rates are favourable,” the shopkeeper said.

Shaikh Suleman from Shivajinagar said the high prices were especially affecting lower-income customers. “If 10 people come to buy, around four come to sell. But overall footfall has reduced. People do not want to buy gold at these rates, and those with limited budgets are finding it difficult to afford purchases,” he said. Jewellers in Shivajinagar said ongoing road excavation work on Jumma Masjid Road, a major jewellery hub, had further hurt business.

Praveen, another shop owner, said the duty hike had come at a difficult time when demand was already slowing. “When rates are this high, business naturally suffers. On top of that, the roadworks are making it difficult for customers to reach the shops. It is a challenging period for us,” he said. The Shivajinagar Association of Jewellers declined to comment in detail, saying it was too early to assess the full impact of the price rise on business and that members had not yet discussed possible measures to support the trade.