Mangaluru: Volatile gold prices have dampened jewellery demand in Mangaluru, with trade bodies reporting a sharp drop in purchases despite the ongoing festive season.Prashanth Shet, treasurer of the Karnataka State Jewellers Federation, said frequent fluctuations in gold rates have made customers cautious. “Gold prices remain highly volatile and have not stabilised. Even today, rates increased by Rs 300 per gram. This uncertainty is affecting consumer confidence,” he said.While festive buying continues, purchases are taking place in smaller quantities. According to Shet, sales volumes have fallen to nearly 50-60% of last year’s levels. Jewellery exhibitions are also witnessing poor footfalls. Shet said jewellery demand has been under pressure since the outbreak of the Ukraine war, with the slowdown affecting even the diamond segment. He attributed part of the decline to changing consumer preferences, with spending increasingly shifting towards visible luxury products such as premium cars and high-end gadgets.The volatility has altered both buying and selling behaviour. Customers are reluctant to sell gold as they view it as a safeguard for future needs. At the same time, some investors are moving towards alternatives such as exchange-traded funds (ETFs). Though jewellers have not suffered direct losses, lower sales are affecting profitability. “Inventory carrying costs continue through interest and operational expenses. Without turnover, the business incurs losses,” Shet said.Dhananjaya Palke, president of the Mangalore Jewellers Association, said demand has weakened further as regular customers postpone purchases amid uncertain prices. He added that gold buying is traditionally lower during the Hindu month of Ashada and that the market outlook would become clearer once the period ends. Palke said smaller jewellers are facing added pressure from reduced bulk orders and declining customer footfall. The growing presence of corporate jewellery chains offering steep discounts is also affecting local businesses.A city-based jeweller said demand has declined following Prime Minister Narendra Modi’s appeal to avoid non-essential gold purchases for a year, though the impact after Ashada remains uncertain. Jeweller Kumar Shet said exchanges have increased even as customer footfall has dropped by 30-40%. Keshav Prasad Muliya noted that while the number of buyers has reduced, average purchases per customer have increased, helping keep overall revenues stable as gold continues to be viewed as a reliable investment.
