Gold Demand Holds Steady In Kerala As Buyers Shift To Exchange & Remodelling

Despite industry expectations of pressure on jewellery sales volumes amid record-high gold prices and higher import duties, ground-level demand conditions remain broadly stable, with changes largely visible in buying behaviour rather than overall consumption, according to Anil Jose, Managing Director, TT Devassy Jewellery, Kunnamkulam, Thrissur, Kerala.

He noted that customer footfall and overall jewellery sales have not seen any significant decline following recent advisories and ongoing discussions around gold imports and pricing trends.

“We have not witnessed any significant decline in customer footfall or overall jewellery sales following the advisory. However, there has been a noticeable shift in buying patterns, particularly in categories such as gold coins and bullion purchases, where customers are becoming more cautious amid rising prices and the broader discussions around gold imports,” he said.

According to him, while overall demand remains steady, the impact of higher prices is more visible in selective segments such as gold coins and bullion, where customers are adopting a more cautious approach.

At the same time, he pointed out that consumer behaviour is increasingly adapting to the price environment through alternative purchase methods rather than a demand reduction.

“Many customers today are choosing to exchange or recycle old jewellery by remodelling existing ornaments into new designs, which keeps the cycle of consumption active,” he said.

He added that while discretionary purchases may see temporary moderation if prices remain elevated, demand for gold jewellery is unlikely to witness a substantial decline.

“Gold continues to hold deep cultural, emotional, and financial significance for Indian consumers, and this sentiment will remain strong in the long term. Consumers will continue to invest in gold for weddings, celebrations, traditions, and long-term value,” he said.

On the long-term trajectory, Anil Jose said the industry is expected to remain steady, with consumers becoming increasingly value-conscious in their purchase decisions.

“The outlook of the gold industry remains positive. Consumers may become more value-conscious in their purchases, but the overall sentiment towards gold continues to remain strong. Unless prices remain exceptionally high for a prolonged period, we expect steady growth and sustained consumer interest,” he added.

Published on: Friday, May 29, 2026, 09:48 PM IST