Mumbai: Prime Minister Narendra Modi’s appeal urging citizens to avoid buying gold for a year amid the ongoing West Asia conflict and global economic uncertainty has triggered mixed reactions among jewellers
and traders across Mumbai.
As part of a broader push to conserve foreign exchange reserves, the Prime Minister suggested several cost-cutting measures, including reducing foreign travel, encouraging work-from-home practices and avoiding gold purchases temporarily.
Speaking to The Free Press Journal, Raju Solanki from Zaveri Kapoorchand Lalchard said the appeal was economically justified as gold imports lead to a major outflow of foreign currency.
“It is a good thing to ask people because gold is a major outgoer of foreign currency, which should be conserved during difficult times,” he said.
However, Solanki added that the impact on the gold market may remain limited due to India’s traditional and cultural dependence on gold purchases during weddings and festivals.
“Marriage and festival buying cannot stop. Investors may wait for some time, but if prices start rising again as predicted globally, they will definitely return to the market,” he said.
Lalit Palrecha from Lalitkumar Pukhraj Jewellers also supported the Prime Minister’s intention, saying the move could help strengthen the country’s economy.
“If people avoid buying gold for one year, foreign currency will remain in the country. That is the main motive behind the appeal,” he said, while adding that gold still remains an important form of savings for Indian households.
Meanwhile, Mithil Jodawat, owner of Luxe Gold Jewels, said the market was already witnessing uncertainty due to global geopolitical tensions.
“We are expecting lower footfall in the coming months. Customers are already calling us asking what will happen if people stop buying gold for a year,” he said.
Several jewellers also raised concerns over the impact such a slowdown could have on workers and artisans dependent on the jewellery sector.
Jeweller Kumar Jain said millions associated with the trade could face financial hardship if demand drops sharply.
“If jewellery shops do not get work, how will we survive? We saw similar conditions during Covid,” he said.
Another trader, Anil Jain, described the Prime Minister’s appeal as potentially “the last nail in the coffin” for an industry already struggling with rising gold prices and declining customer footfall.
At the same time, he acknowledged the government’s concerns regarding the current account deficit and pressure on the rupee amid rising global tensions and volatile oil prices.
“The Prime Minister is trying to act before the situation worsens,” a trader said.
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