MUMBAI (Commodity Online): Where are the jewellery buyers this wedding season? That is the million dollar question haunting gold jewellery shop owners during the peak wedding season in India.

In fact jewellery shops have reported that their sales are down almost 70% this wedding season compared to the previous year.

And the season has failed to bring any cheer to the jewellers even as the prices of gold soared to Rs 17,000 per 10 gm.

The soaring prices have kept customers at bay as most potential buyers are sticking to their old traditional jewellery.

Rising gold prices have hit the jewellery business very badly. And, customers are getting new sets made out of their old jewellery. Not much trade is taking place right now because of the fluctuating price of gold, thanks to the US dollar becoming weak.

The story is the same in Mumbai, New Delhi, Kolkata, Chennai, Kochi and all major cities in India.

Those who have to buy jewellery for their daughter’s wedding are indeed coming in. But they are only buying lighter sets that don’t overshoot their budget.

Families are cutting costs and buying new sets only for the bride. Others are just getting old jewellery reset into new designs. 

But even as people avoid buying jewellery, gold is being considered a great investment option. An MMTC official told the Economic Times: “There has been a 15-20 % increase in solid gold buying as against jewellery. It’s because of the expectation of a further rise in prices. Customers view gold as an investment.’’

On Friday, MMTC sold gold coins at Rs 18,155 for 10gm. Traders said more than jewellery people will invest in solid gold. People are expecting the price of gold might even touch Rs 18,000.

National and private banks are also selling gold coins of different denominations — from 2.5, 5, 10, to 100 gms.

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