Chennai: This columnist last week bought a gold ring from a popular jewellery store bustling with customers. Gold buying remains strong in this part of the country despite rising rates because the precious metal is considered a trusted safeguard against inflation, a cultural necessity for weddings and, of course, a generational store of wealth. And the base price of gold remains tied to international markets and domestic import policies.
Recently Prime Minister Narendra Modi asked people to defer gold purchases to protect the country’s foreign exchange reserves and stabilize the rupee amid simmering global geopolitical tension. Since India imports most of its gold, heavy buying drains India’s foreign currency reserves which in turn weakens the national economy.
However, shopping hub T. Nagar continues to attract shoppers, especially on weekends and for wedding-related purchases. But high gold prices have made many customers cautious. Gold prices in Chennai have been volatile and such fluctuations often make people wait for price corrections before making large purchases.
For jewellers here, the wedding market continues to provide support now. Families still buy gold for weddings and important functions, but many of them reduce the quantity purchased, exchange old jewellery for new designs, prefer lower-weight ornaments and choose gold savings schemes before making purchases. With global instability and rising inflation and people continuing to treat gold as a reliable financial umbrella that retains value when paper money or markets fluctuate, the city’s affinity for gold will remain strong. And for umpteen families in Tamil Nadu, gold is a symbol of security that can be pledged, exchanged and passed on to the next generation.
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