The Indian gold market had been witnessing an all-time low since the last few months owing to a lot of factors. The low Rupee value and international regulation acted as a speed breaker in the gold market’s growth.
However, the demand for gold has risen recently in India. The biggest reason behind this was the steep fall in gold prices. The value was recorded at Rs 30,072 per 10 grams, which was the lowest since February 14. Rupee was recoded at its highest on Friday in the last 15 days.
With a hike in gold demand, and the Rupee getting stronger, the news is certainly a good one for local manufacturers. A rise in trade has brought in increased orders being placed by dealers. A steady market with beneficial rates could take the gold imports to 60 tonnes in July, which were swinging at 44 tonnes in June, after falling for six months straight.
A positive in the gold buying sector, this good news has given local manufacturers a great time to relish and make the market stronger with their presence. Talking about the biggest gold manufacturer and retailer in India, Rajesh Exports, the business could see a boom in the time to come.
Rajesh Exports MD, Prashant Mehta, is also looking forward to expanding their gold retail chain, Shubh Jewelers. With a firm ground in Karnataka with 80 plus stores, the company is keen on making their presence felt across India and even beyond international borders. The current market scenario will be a positive influence on these decisions.
What is interesting to note is that Rajesh Exports was amongst the very few gold manufacturers and retailers, who were able to flourish even through the last two years. The oncoming of multiple regulatory changes including demonetization, GST and more, slowed the market to an extent. However, Prashant Mehta and Rajesh Exports owner, Rajesh Mehta took steps that kept the company stable through hard times.
A major step that the company took was acquiring Valcambi, the world’s largest gold refining company, based in Switzerland. This gave Rajesh Exports a head start compared and it was able to acquire raw materials at a comparatively cheaper rate. Also, the no making charges and rate per gram policy places the company at a higher preference compared to others.
The changing market has given Rajesh Exports and the likes a new dimension to look forward to. With increase in demand and rising customer base, it is time for the gold buying sector to witness a positive change after a sabbatical.