Gold price touches ₹1 lakh per sovereign, buyers feel the pinch

The price of one sovereign of gold (8 grams) has crossed the ₹1-lakh mark. Though this was widely anticipated, it has not eased the distress faced by families of brides, many of whom had hoped for a last-minute price drop. Much like petrol prices crossing ₹100 a litre, the common man has little option but to resign himself to the reality.

“This is a huge slap in the face for common folk. We hoped to make a last-minute purchase, expecting prices to drop, even though gold had remained above ₹90,000 for the past few months,” said Bivitha M., a homemaker from Koyilandy in Kozhikode. Her eldest daughter is getting married on Sunday. “All we can do now is make do with seven sovereigns instead of the 10 sovereigns we had planned to buy,” she added.

The wedding season is in full swing in Kerala, which consistently leads the country in per capita gold consumption. Gold jewellery remains a near-mandatory component of weddings across communities in the State. While it earlier formed part of dowry practices, it is now largely viewed as an investment for the bride’s future. “Gold comes in handy during emergencies. With prices steadily rising, it has become one of the most reliable investments for anyone, not just women,” said Ramya N.P., an accountant in the city, who got married a year ago when gold was priced at around ₹50,000 per sovereign.

The family of Archana Anilkumar, who is getting married in mid-January, had anticipated the surge and made arrangements well in advance. Archana’s mother had deposited money with two different jewellery stores over the past year, allowing her to purchase gold at the price prevailing on the day of deposit. “She deposited money at one jewellery store when gold was around ₹55,000 per sovereign and at another when it was ₹70,000. That has come in handy now,” Ms. Archana said.

Meanwhile, many modern-day brides, including Archana, are averse to wearing heavy gold jewellery and often insist they do not need much gold for their weddings. Bivitha said it was a huge relief that both her daughters had refused to accept large quantities of gold from their parents. “They maintain that they can buy gold on their own if needed,” she added.

The spiralling gold prices have also adversely affected the jewellery trade. “Most people now come only to exchange old gold ornaments. Even for weddings, many opt for imitation jewellery. Gold is no longer purchased as gifts,” said T.K. Surendran, Kozhikode district president of the All Kerala Gold and Silver Merchants’ Association. However, Kerala’s affinity for gold is unlikely to wane, even if affordability continues to decline, he said.