New Delhi [India], September 17 : The jewellery market in India is witnessing a shift in buying trends, with a broader range of customers driving demand in the second quarter of 2024.
As per Nuvama report, while affluent buyers led purchases in the first quarter, the second quarter has seen a rise in lower-priced jewellery items. Semi-urban and rural markets are also contributing significantly to the overall demand.
The report suggests that the second half of 2024 could see an industry-wide volume demand increase of 18 per cent. Experts attribute this growth to the upcoming festive season, with retailers expanding their store networks to meet the expected rise in customer demand.
A key indicator of the sector's performance is gold imports. As per the Nuvama report, in July and August 2024, gold imports were expected to be 11 per cent higher compared to the same period last year, with August showing a strong recovery.
This trend points to increasing demand in the jewellery sector, which has also been bolstered by continued buying of gold by central banks. This buying activity is further driving both the price and volume growth of gold in the market.
Gold prices have surged, currently standing 30 per cent higher than the average levels recorded in the second half of 2023.
The expected 18 per cent growth in volume, paints a positive outlook for the jewellery market in the coming months.
Domestic gold prices, which had been trading at a discount for five months due to excess inventory and weak demand, also saw a boost following a reduction in basic customs duty announced in the July Union Budget.
Looking ahead, despite a 9 per cent YoY decline in volume during the first quarter, the market is expected to bounce back.
The period of July to August 2024 has already shown positive signs of recovery, and further growth is anticipated as India approaches the peak wedding season.
The World Gold Council (WGC) has projected that gold demand in CY 2024 will reach 850 tonnes, marking a 12 per cent year-on-year (YoY) growth.
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