New Delhi
Gold prices are touching the sky between the season of Ann weddings and this is directly affecting the jewelery retailers. Akshaya Tritiya is on April 30 and the bullion markets are decreasing. A report by CRISIL ratings states that by 2026, the cell (volume) of organized jewelers may decrease by 9–11 percent. Since gold will sell expensive, their earnings will increase by 13-15 percent. For the last four years, their earnings have been increasing by more than 20 percent, but people are buying low weight (gram) gold due to inflation.
Gold is breaking record
In 2025, gold prices rose 25 percent and by April 2025 it has increased by 20 percent. If the prices still increase 4-5 percent, then the average price in 2026 will be 22-24 percent higher.
Gold Bhava today
According to IBJA, today 24 carat gold without GST price is Rs 96075 per 10 grams. Earlier on Wednesday it closed at Rs 96085. While the silver price has increased from Rs 96613 per kg to Rs 97616.
People’s budget tight: People are buying gold of low weight due to inflation. The same trend was seen in the wedding festival season.
Round of offers: Retailers Tier-2 and Tier-3 are running discounts and promotion in cities to maintain the sale.
Companies also benefit, losses also
Profit will increase: Increasing the price of gold will give retailers “inventory gains” (benefit of selling at a price higher than purchased gold). This can reach around 7.8-8 percent of the operating margin, which was decreasing for the last two years.
Debt will increase, but not to fear: Debt will increase to buy new stores and stocks, but companies will be able to handle it due to increase in earnings and profits. According to Crisil, the interest coverage ratio will be more than 6 times, which is a good sign.
Government policies are also supporting
Due to GST and BIS Hallmark, people are trusting for organized retailers. Last year, the prices were also relieved due to reduced duty on Gold Import.
What will happen next?
In 2026, the turnover of the industry is expected to reach 4.5-5 lakh crore rupees, but, there will be a threat from the fluctuations in gold prices or changes in government rules (eg import duty). CRISIL experts say, “People’s budget is fixed, so they will buy less gram gold. But, the growth of the organized sector will remain because trust will increase. The debt will increase, but the financial health of the companies will be good.”
