Gold Market Trend Shifts: Small Jewelers Face Crisis Amidst Price Volatility, Branded Competition

• Small and family-run jewelers nationwide are experiencing a severe downturn, attributed to fluctuating gold prices and the rise of large retail players.
• The India Bullion and Jewelers Association (IBJA) reports a 45% decline in sales for local jewelers and goldsmiths.
• Middle-class consumers find it increasingly difficult to purchase gold, with demand for bridal jewelry, a major revenue source for small jewelers, significantly impacted.
• Volatile gold prices deter purchases, with customers only buying for essential events like weddings, as noted by Mumbai jeweler Ashok Sakaria.
• Branded chains like Tanishq, Kalyan Jewellers, and Senco Gold are gaining market share, benefiting from the struggles of unorganized jewelers who lack hedging and cash reserves.

Why It Matters: Small jewelers are struggling due to gold price volatility and increased competition from large branded chains.