Rising gold prices have led to an increase in interest among customers for the yellow metal, said Ajoy Chawla, CEO- Jewellery Division of Titan Company Limited that sells gold and jewellery under the brand Tanishq
Increasing Interest in Gold
Chawla highlighted that the surge in gold prices, with a 20 percent increase in the first quarter of April-June 2024 compared to the same period last year, has piqued customer interest. Despite short-term concerns about rising prices, customers are drawn to gold due to the attractive returns it is offering.
Chawla pointed out that over the last five years, gold prices have more than doubled, with a compound annual growth rate (CAGR) of around 12 percent over the past decade. This steady increase in value has bolstered customer confidence in gold as an investment option, comparable to equity.
Impact on Sales Volume
Addressing concerns about the impact of soaring prices on sales volume, Chawla emphasized that Tanishq measures sales in terms of the number of buyers rather than the quantity of gold sold. While volume may be affected in terms of weight (grammage), the focus remains on attracting and retaining buyers, both new and returning.
- Also read: We can maximise the opportunity with our different brands, says Tanishq CEO Ajoy Chawla
Additional Insight
One key insight to consider is that rising gold prices not only drive customer interest in purchasing physical gold for investment purposes but also contribute to the overall sentiment of the market. As gold is often viewed as a safe haven in times of economic uncertainty, the upward trajectory of gold prices can reflect broader concerns or developments in the global economy. This, in turn, may influence how individuals perceive and prioritize their investments, with gold becoming an increasingly attractive option during turbulent times.
