Increase in demand likely in the coming festive season for Silver
Silver jewellery and articles are not only affordable but also in huge demand across consumer segments. Apart from jewellery, jewellers also stock other silver products and gifting item’s like cufflinks which appeal to customers and are easy on the pocket too. But the pandemic has hit the segment hard. We got in touch with Aditya Pethe of Waman Hari Pethe and Chintan Chinoy of Millenium Silver and took their views on the impact and future of silver.
Aditya shares, “I feel that the new normal will have a positive impact on the gems & jewellery sector. This is simply because of the fact that when the dust settles wedding industry will see a tremendous shift from having the big fat elaborated weddings to small sized guess list wedding. Historically, jewels & gems have always played an important role in the wedding industry. This changed somehow in the last decade with the focus shifting to the grand decors, multiple functions & elaborated catering. In the new normal where people would still want to spend money as it is a status symbol in the country, jewellery will regain its much-deserved status again.”
Chintan on the other hand feels that the jewellery industry will be the last to Operate at its best potential. He says, “Millennium silver has been in the heart of Zaveri Bazar in Mumbai since 2012 and we haven't seen such days ever. People are focusing on saving right now because they don't have a timeline to normalcy. So new and regular customers both are affected and the purchases are at their all-time low. But I feel positive about markets regaining strength and the world adapting to the new normal as they say it.” Chintan believes that the future is assertive for silver. “Increasing gold prices guarantee increase in purchase of silver. Gradually orders have started pouring since the government eased down the lockdown in a lot of states. Assuming 6 to 8 months’ time for things to get back on track, it wouldn't be the same as usual but yes people will be seeing a shift from gold to other metals.
Post the lockdown, the country is gradually opening up and Aditya feels that the new normal will have a positive impact on the Gems & Jewellery sector. “People will buy jewellery and other articles irrespective of the current scenario as it holds a very sentimental value in their life. Soon the festivities will start and people will want buy silver rather than artificial jewellery as it is a precious metal. In terms of demand for silver jewellery, we will start seeing demand for occasions like Raksha Bandhan, Janmashtami, and Ganesh Chaturthi etc. as people buy Silver rakhis, puja thalis and articles for Ganpati, Raksha Bandhan and Janmashtami etc.”
Similarly, Chintan is also positive about the future of the silver jewellerty and articles segment. “Gradually things are picking up pace. The demand is more from the southern part of India specifically and to our advantage that is also our strong hold. States like Gujarat & Rajasthan play a vital part in manufacturing, sale & purchase of silver jewellery as well. For normalcy, there is no time estimation possible due to the increasing number of cases. Till a vaccine or a treatment comes to light, people will still be sceptical of going shopping. That is where the digital age steps in and social platforms become very vital for sale as well” he adds.
Shedding light on the latest trends in the category, Chintan says that the latest trends include light weight modern design with solitaire high fire stones, semi-precious stones & corals as well . At the same time there is an increase in ethnic, rustic jewellery with intricate details thanks to GoLocal movement & platforms like Lakme fashion week which are focusing on traditional roots in local weavers & ergonomic fashion. Aditya on the other hand says, “A lot of cocktail jewellery is trending in silver. At Izaara we have seen classic designs with zirconia in trend as well. Silver Jewellery is now available in a lot of different styles that are suitable for every client needs. We have seen silver jewellery in various forms such as gold polish, rhodium polish, antique finish etc. On one hand certain silver pieces have a very earthy vibe whereas on the other hand some have contemporary finish to it. So, it has more diverse personality which is something that has made it to emerge more in the trend over the years.”
Gold rates have been ever increasing and more so during this ongoing pandemic but as Aditya shared, Silver has also gone up by 25% almost in the last two months. He adds, “People use gold and silver more independently, even if the price of gold has gone up it will not affect people’s preference to shift to silver. Also, there is a section of people who buy silver jewellery for the love of silver whereas gold lovers never prefer any other metal than gold. I don’t think there will be conversion from gold jewellery to silver jewellery in terms of consumers. But independently there still has a good set of people who prefer silver. Similarly, Chintan also signed off by saying that there has been an increase in demand across the silver jewellery industry, gift artifacts sector, corporate gifting like coins & idols.