India's gold rush is encouraging people to recycle jewelry for weddings

 India's gold rush is encouraging people to recycle jewelry for weddings

India's gold rush is encouraging people to recycle jewelry for weddings

Due to expectations that the Federal Reserve will lower interest rates early in the next year, spot gold reached a record high on Monday and has increased by more than 10% since the start of October.

As demand rises during the wedding season in India, the nation that consumes the most gold after China, some Indians are exchanging their gold jewelry for new pieces due to rising gold prices.

Surendra Mehta, national secretary of the India Bullion and Jewelers Association Ltd., said that imports would continue to face pressure in the next months due to the increasing number of Indians wishing to recycle their gold and rising costs. He said that while consumers are shopping for wedding-related items, they are generally avoiding the market otherwise.

Due to expectations that the Federal Reserve will lower interest rates early in the next year, spot gold reached a record high on Monday and has increased by more than 10% since the start of October. Because India is entirely reliant on imports, bullion is significantly more costly there due to the weakening rupee.

"Wedding shopping is a necessity," said Waman Hari Pethe Jewellers partner Ashish Pethe. According to him, 10 grams of jewelry in India costs around ₹ 60,000 ($720). As a result, some buyers are purchasing antique jewelry. You're changing what you're purchasing by switching to new jewelry.

Indians spend a lot of money on jewelry because it is auspicious to wear and give gold at weddings. The majority of Indian marriages take place in November or February.

About 25,000 tons of the precious metal are found in Indian temples and households combined. During the July-September quarter, the nation imported 220 tons of gold, a 19% increase over the same period last year.