Gold schemes start at Rs. 100 as digital sales rise
Jewelers in India are selling gold for as little as Rs. 100 as digital trading of the metal has gained popularity in the aftermath of the COVID-19 pandemic. Popular jewelry chains have either started offering gold schemes directly on their websites or through partnerships with digital gold platforms. Sales are expected to further bolster during the upcoming festive season, industry experts say.
Gold sales hit a low last year due to the nationwide lockdown over COVID-19, but it also gave a much-needed push to India's online gold market. Major chains, including Tanishq, Kalyan Jewellers, PC Jeweller Ltd., and Senco have started offering gold online. Under most schemes, customers are free to take delivery once they have invested enough money for at least one gram of gold.
"COVID-19, obviously, has changed the mindset of a lot of jewelers and they have also been proactive in selling jewelry online. So this is just the extension of the whole mindset," said Ketan Kothari, Director at Augmont Gold. Just earlier this month, Kalyan Jewellers had tied up with Augmont Gold to offer its gold products in an internet-friendly way.
Besides the impact of the pandemic, a younger generation of buyers and investors, which is more accustomed to using technology, is expected to give a boost to the digital gold trading sector. In 2019, a bulk of online gold purchases in India were made by people under the age of 45, according to a report by World Gold Council, released last year.
"Since February last year, we have seen a 200% rise in sales on our platform with most consumers snapping up coins and bars in the range of Rs. 3,000 to 4,000," Kothari said, according to Bloomberg. "During the pandemic, buying gold in the digital form has gained immense popularity and we expect sales to increase by 20-30% this festive season compared with last year."
A drop in gold prices has also helped in boosting online sales. On Multi Commodity Exchange of India (MCX), gold rate today is Rs. 45,859 per 10 gram, nearing the lowest mark in six months. Silver rate also dropped to Rs. 60,450 per kilogram.