On Thursday, gold opened ₹1,100 a gm higher than the previous day closing, throwing jewellers off balance
| Photo Credit:
MURALI KUMAR K
Soaring prices of gold and silver are creating operational challenges for jewellers, who are hesitant to book advance orders from customers in view of the volatile movements.
On Thursday, gold opened ₹1,100 a gm higher than the previous day closing, throwing jewellers off balance. Silver, too, quoted higher by over ₹27,500 a kg. Gold, which opened at ₹1,76,121 per 10 gm, ended at ₹1,75,340 against previous closing of ₹1,64,635. Silver eased to ₹3,79,988 a kg from ₹3,85,933 against ₹3,58,267.
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd and President of India Bullion and Jewellers Association Ltd, said the sharp surge in gold and silver prices created real operational challenges for jewellers.
No advance booking
“Extreme volatility makes it difficult to quote prices, lock orders, or manage inventory risk, as even small intraday moves can wipe out margins. Many jewellers are seeing customers defer purchases, renegotiate orders, or shift to lighter designs due to uncertainty around prices,” he said.
“No one is taking advance booking as prices have soared. It is difficult to take a booking in a situation like today when gold price went up by over ₹1,000 a gm,” said All-Kerala Gold & Silver Merchants Association General Secretary S Abdul Nazar
N Anantha Padmanabhan, managing director of Chennai-based NAC Jewellers, said jewellers are now seeking 100 per cent payment for gold jewellery orders from customers.
“We are asking for at least 50 per cent advance when customers book orders with us,” said S Abdul Nazar.
“After every sale, we have to replenish our gold stocks. We are buying gold every 2-3 hours and find prices fluctuating every minute,” said Anantha Padmanabhan.
Reasons for the surge
Traders said they were finding it difficult to manage the daily volatility in the precious metals complex. Gold has increased by nearly 12 per cent this week and silver by over 25 per cent.
Nazar said purchases of precious metals have slowed in view of the volatile situation. “Jewellery gold ruled at ₹99,000 per sovereign (8 gm) on January 1. Today, it is at ₹1,31,000. Over the past two years, gold’s rise was gradual. But today, it is rising by ₹300-500 every day,” he said.
At the same time, higher working capital requirements and hedging costs are adding pressure. While long-term demand remains intact, in the near term, elevated prices and rapid swings are disrupting order flows and forcing jewellers to adopt a far more cautious, just-in-time approach to bookings, said Kothari.
Gold and silver prices have been rising in line with global trends. Globally, precious metals are soaring due to investors’ flight from currencies and bonds, geopolitical crises, US trade disputes with various nations and uncertainty over the US Fed’s policies.
Over the past year, gold prices have nearly doubled, while silver rates have nearly tripled.
Published on January 29, 2026
