In the backdrop of hard hit gold business in India, Indian jewelers are exploring some new and innovative ways to sell gold to its large consumer base. The gold traders and jewelers in India have started selling gold for a little over $1 online. The gold jewelers are necessitated to embrace digital ways to sell gold because the sales of gold nosedived last year after the nationwide lockdown induced by COVID-19 pandemic was imposed across the country.
Just to stay afloat and sail through the crisis smoothly, jewelers such as Tata Group’s Tanishq, Kalyan Jewellers India Ltd., PC Jeweller Ltd. and Senco Gold and Diamonds launched offers to sell gold for as little as 100 rupees ($1.35) either directly on their websites or through tie-ups with digital gold platforms. The only condition with these innovative schemes that the consumers can take delivery once they have invested enough for at least 1 gram of gold.
However, this sale of digital gold is not new to Indian market, this has been thriving with the help of Augmont Gold for All, and World Gold Council-backed SafeGold offering the product. Jewelers had so far shied away from selling such products online, restricting them to their stores as the bulk of purchases in India are still made in person.
As the festive season and the wedding season in India is around the corner, the jewelers have come up with these new when gold demand is bound to rise. In order to target tech savvy youngsters, these digital mode centric offers are being launched aggressively almost by all jewellers. Digital purchases are rising as more Indians warm up to buying via the internet. That, along with a more technology-friendly, younger generation of consumers is expected to boost the sector.
According to a media report, the online gold purchases, which includes the sale of ornaments on jewelers’ websites, accounted for only about 2 per cent of the overall sales value in 2019, the bulk of these transactions were made by people under the age of 45, according to a World Gold Council report last year. And according to a digital gold selling platform Safegold, with the drop in gold prices, the volume of digitals sale of gold has risen.
“Since February last year, we have seen a 200 per cent rise in sales on our platform with most consumers snapping up coins and bars in the range of 3,000 to 4,000 rupees said. During the pandemic, buying gold in the digital form has gained immense popularity and we expect sales to increase by 20 per cent-30 per cent this festive season compared with last year,” Augmont’s Kothari found quoted in national daily Business Standard. However, on Friday, the Gold prices were trading with a marginal decline on Friday after a decent rebound in the previous session. Firm US dollar made the yellow metal expensive for holders of other currencies. The dollar recouped most of those losses on Friday and began the final quarter of 2021 at close to its highest level of the year.