India’s Wedding Season Boosts Gold Jewelry Sales 5%

The Indian wedding season, which runs from November to February, is a vital period for the local retail jewelry industry, during which 60-70 percent of the country's annual gold consumption of around 600 tons is turned into jewelry.

 

Gold jewelry gifts are a traditional present for couples, with parents giving gold jewelry to brides to provide financial security.

Indian retail gold jewelry sales during the current wedding season are up around 5 percent, according to major jewelry manufacturer InterGold.

"Gold is a traditional gift given at all weddings from the lowest to the highest [classes] and we have seen a rise of 4-5 percent," said Amar Kothari, InterGold Chief Operating Officer.

“At the lower end of the scale, jewelry gifts containing around 10 grams would be the minimum. At the higher end would be presents containing 30 grams which would retail at $550 to $700," Kothari said.

The rise in demand for gold jewelry during the current wedding season is in stark contrast to last year which saw a decline in orders of more than 20 percent due to higher gold prices.

Since the price of gold has remained high, however, customers are now seeing it as a worthwhile investment. The precious metal is currently trading at $424 per ounce.

The attraction of gold for Indians has also been boosted by the ongoing strength of the rupee against the dollar. The rupee is trading at around 43 to the dollar, a level it has maintained for many months.

Meanwhile, Kothari said the Orra brand which parent company Rosy Blue launched last September was meeting the company's targets. "We are in 26 locations and the business is proceeding as we were hoping."

The Orra chain store replaces some of Rosy Blue’s InterGold stores and carries higher-end diamond jewelry collections.