EXCLUSIVE
RiddiSiddhi MD sees consumer demand for jewellery reviving in Jul-Dec
This story was originally published at 16:56 IST on 11 March 2025
Register to read our real-time news.Informist, Tuesday, Mar. 11, 2025
By Sandeep Sinha
MUMBAI – Price stability, festival demand, and an improved economic outlook will lead to a revival in consumer demand for gold jewellery in the second half of 2025, according to Prithviraj Kothari, managing director of RiddiSiddhi Bullions Ltd. Expectations of correction in gold prices, interest rate cuts by the Reserve Bank of India, and improved consumer sentiment could lead to a turnaround, he said.
"Key drivers for demand resurgence include the wedding season in Q3 (Jul-Sept) and Q4 (Oct-Dec) of 2025, festive buying during Diwali and Dussehra, and possible government policy adjustments on import duties," Kothari said. Global factors will also play a crucial role. If inflation eases in the US and the US Federal Reserve moves ahead with interest rate cuts, gold prices may fall or stabilise, he said.
The surge in domestic gold prices has dampened jewellery demand, with no immediate signs of recovery seen in Jan-Jun. Until gold prices come down, demand is expected to remain subdued, with stronger interest in investment gold rather than jewellery purchases, Kothari added.
The impact of soaring prices is already evident in India's gold demand, which saw a sharp decline in the first two months of 2025. Gold imports plummeted nearly 85% on year in February to a 20-year low of around 15 tonnes. In January, the imports were estimated at 30-35 tonnes, the lowest since July 2024, Kothari said.
"This sharp drop is attributed to domestic gold prices reaching unprecedented levels, which has dampened consumer demand," Kothari said. As the market awaits price corrections and economic relief measures, all eyes are on the latter half of 2025 for a potential rebound in jewellery sales, he said. End
Edited by Ashish Shirke
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
