Surge in gold prices? Here’s what jewellery buyers must know

Gold prices are at an all-time high. The cost of the yellow metal recently crossed the Rs 1 lakh-mark per 10 grams in India’s capital, Delhi, amid political tensions, global uncertainty and rising inflation. There’s really no stopping–the gold rate today stands at Rs 88,950 per 10 grams, and the numbers are going to look like this in the near future.

The increase in gold prices has been a bone of contention for jewellery buyers. While gold continues to be a preferred form of investment–it is also likely to deter many from purchasing heavy pieces, bringing up the demand for low-karat jewellery. Some may even wait it out until the price drops.

Fret not, even in a scenario of gold price rise, buyers can follow certain tips to their benefit. Before we get to that, let’s look at some factors driving the surge in gold prices.

Current trends in gold prices

As per current trends in gold prices, the situation is dynamic–which can lead to fluctuations in the cost. The rise in gold prices is fuelled by global economic factors, the US dollar’s strength and any change in government policies.

At other times, increase in gold prices is directly linked to a strong demand for the metal, especially during festive season.

Some of the key factors driving the recent surge in gold prices include:

Global economic conditions: The ongoing uncertainty in the global economy, including tension between India and Pakistan can make gold a go-to asset, driving up the demand and in turn, its price.

Strength of the US dollar: Another crucial factor that determines the price of gold is the US dollar’s strength. A stronger dollar can make gold more expensive for foreign investors.

High interest rates: With higher interest rates, the price of gold can skyrocket. This can push investors away from relying on it, turning to other forms of long-term investment.

Rising inflation: Last but not the least, inflation is one of the biggest reasons leading to an increase in gold prices. That’s also because it acts as a hedge during uncertain times.

Impact on jewellery buyers

With the rise in gold prices, the cost of jewellery pieces is likely to skyrocket. This, in turn, will bring down the overall demand for jewellery.

Some buyers may want to push purchasing during this time, or end up buying lighter pieces that are more affordable.

Rise in gold prices is also likely to lead to increased scrap or old jewellery exchange. Those interested in jewellery may want to get new pieces in lieu of old ones, or sell gold for financial gain.

There’s also a section of buyers who would prefer to invest in gold bars and coins, owing to the quality of the yellow metal to act as a hedge.

Market predictions

Analysts anticipate that gold prices may continue to rise in the near future. Factors such as global economic conditions, central bank policies, and currency fluctuations will play pivotal roles in determining future price movements.

Tips for jewellery buyers during
high gold price periods

Exchanging vs selling: At this point, making a strategic decision like selling or exchanging gold is a good idea. While selling outright offers immediate financial returns, it entails challenges in finding trustworthy buyers and securing fair prices. However, one can always buy low-karat jewellery at affordable pieces.

Research properly: Before selling or making an old gold exchange, it’s essential to research potential buyers to ensure a fair and trustworthy transaction. Look for reputable jewellery stores that specialize in either. Check their reputation, reviews, and certifications such as accreditation from organisations like the Better Business Bureau.

Get your jewellery evaluated: Having your gold jewellery appraised is a crucial step. An appraisal determines the value of your jewellery based on its purity, weight, craftsmanship, and market conditions. Seek out reputable and certified appraisers who have expertise in evaluating, and eventually selling or conducting old gold exchanges.

Check for safety and transparency:

When engaging in a gold jewellery exchange, ensure your safety and security. For online exchanges, research the buyer’s reputation and use secure shipping methods with tracking.

Tanishq, which is a reputed Jeweller in India introduced its ‘Gold Exchange Policy’ to cater to the evolving requirements of customers amidst fluctuating gold prices.

A smarter financial choice

Our transparent and flexible process accepts gold from any jeweller in India, prioritising customer convenience and peace of mind. With Tanishq, customers can seamlessly transition their old jewellery like gold rings for women, bracelets or necklaces into updated designs, reflecting current tastes and preferences.

The benefits of Tanishq’s program extend beyond financial gain, allowing customers to rejuvenate their jewellery collection with contemporary designs and superior craftsmanship. Our year-round exchange services provide flexibility, enabling customers to capitalise on favourable gold price fluctuations and maximize the value of their assets.

With high gold prices, the Tanishq gold exchange becomes the most economical way to acquire new jewellery. It’s like using your old gold as a form of down payment on a brand-new piece. This makes it a smarter financial choice compared to using cash or credit cards.