From jewellery to gold-plated items and now gold certificates, a look at the new golden course of the yellow metal

The many faces of gold

From jewellery to gold-plated items and now gold certificates, a look at the new golden course of the yellow metal this Dassera

    Three months ago, when Shakshi Talwar, a brand executive, opened a gold account with a famous gold jewellery brand four months ago, she wasn’t doing anything new. Shakshi, much like her peers, was following a growing trend of investing now, buying later. It was a wise decision, given that the gold prices had already crossed 30K. What made the 30-year-old story different was not the opening of an account, but the purpose. Shakshi wasn’t doing it for her wedding, but to be able to follow the tradition of buying gold, and gifting gold coins in Dassera.
    Incidentally, Shakshi isn’t the sole example of this new trend. In the past few months, many have done the same. Take for instance Binny Roy. The 40 something homemaker, enrolled in the same scheme about eight months ago, so that she could get the gifts gold plated/leafed for the festivals. “It is an easy way to save for a something that is our culture, our tradition, irrespective of whether gold is priced at 30K or more.”
    Concurs K Vamsi Krishna, Manager Commodity Research, JRG Wealth Management, who believes that the rise in the trend is not only because of the investment value this precious metal gets on table, but also emotional. “Gold in India has long been one of most valuable and highly sought after commodities. The metal, which is associated as a mark of purity and beauty usually sees an increase in demand around the last quarter of every calendar year due to festival season followed by the start of the marriage season in the northern and central part of the country,” says Krishna.
    Kiran Dixit, Marketing Head of TBZ also agrees on the ‘rise’ that gold buying takes during festivals. “Dassera is primarily a religious occasion and you would do well to gift religious gift items like gold or silver coins featuring images of Goddess Durga, Goddess Lakshmi or Maa Shakti. They have been a sign of good luck and prosperity for long.”
    Though there is no denying the gold coins have been an all time favourite of most, but lately, especially in the past five years, this “buying culture” has seen what experts like to call a more ‘pragmatic shift”. Says Dixit, “Besides bying gold coins in 1 and 5 grams, people also buy other auspicious items such as Mata Ki Chunree, Mata ka Chattar, Mata ki Murti (idols), Rudraksha lockets, and even jewellery sets for family members and friends.”
    But, adds Krishna, “Given the crunch in supply and exhorbitant rates of gold, the more practical approcha of most has been towards buying gold on paper like Gold ETF, gold bars, Spot E-Gold and as safe certificates that can be encashed in the long term.”
    In fact, the Buillion Bulletin has shown a constant decline of jewellery buying since 2005. According to one of their post: jewellery demand has decreased from 2005 onwards in the first half of the year. From 1413 tons in 2005, the consumption has dropped to 747.2 tons in 2009 and recovered in 2011 by 992.7 tons.
    Krishna, who has following the gold trend agrees with the sudden fall in the investment pattern. In fact, he adds, that the current rate of Rs 30,000 for 10 grams has affected the market adversely. Already in the last quarter (that is June-September), India has seen the jewellery demand down by nearly 40 percent from second quarter of the last year. The reason for this may also be with the rise in import duty prices by the government, and higher domestic inflation.”
    However, Krishna, like most jewellers, is confident of a sudden, though temporary rise in the demand of gold in the next two months. “There will be a rise in gold buying as the festive season leads to the wedding, however, it may not be as much as buying physical gold as in terms of ETF and Future trading.”
    And while brands like TBZ share the concern, there has been no lacuna in bringing out new collection for the seasons. So while TBZ has got a new collection for the modern day women called the Showstopper collection, which will be the best of all the occasion special series of the brand like its Wedding Collection and Temple Collection. Others like Lagnu are reviving the vintage culture by bringing back old South Indian temple style in jewellery of both 22 and 18 carat.
    Chitih on the other hand is getting bridal jewellery with gems to capture the occasion and SRS Jewells have introduced a dual collection that would give you the same design in both silver and gold.
    Besides vintage jewellery, the other thing that is making a big comeback this season is the bangles. Like Raira’s special festive bracelet and bangle collection. There is a lot of leafing work that is in vogue too, especially on clothes and articles.
    And while the experts see a change in the buying pattern of jewellery more for investment that following an age old tradition, their advice to buyers is stick to 24 carat gold, if possible. “This assures the purity of gold and is a safe bet than say an 18 carat gold.”