Surging gold prompts Indians to exchange, recycle jewellery for weddings

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More Indians are looking to reuse their gold, and the higher prices mean imports will remain pressured in the coming months.

More Indians are looking to reuse their gold, and the higher prices mean imports will remain pressured in the coming months.

PHOTO: ST FILE

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Surging gold prices are prompting some Indians to exchange gold jewellery for new pieces as demand rises during the wedding season in the biggest consumer of the precious metal after China.

More Indians are looking to reuse their gold, and the higher prices mean imports will remain pressured in the coming months, said Mr Surendra Mehta, national secretary at the India Bullion and Jewellers Association.

Consumers have been buying to meet wedding-related needs, but are otherwise largely staying away from the market, he said.

Spot gold jumped to a record high on Dec 4

and has risen more than 10 per cent since early October on speculation the United States Federal Reserve will cut rates in early 2024.

A weakening rupee means bullion is even more expensive in India, which is totally reliant on imports.

“Wedding purchases are happening as they are inevitable,” said Mr Ashish Pethe, a partner at Waman Hari Pethe Jewellers.

Indian prices have been hovering around 60,000 rupees (S$967) for 10g, and some consumers have been adjusting their purchases by exchanging old jewellery for new, he said.

Wearing and gifting gold is considered auspicious during weddings, and Indians spend heavily on jewellery. Most Indians tie the knot between November and February.

Indian households and temples collectively hold about 25,000 tonnes of the precious metal. The country imported 220 tonnes of gold in the July-September quarter, 19 per cent more than a year earlier. BLOOMBERG

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