Following Prime Minister Narendra Modi’s recent call for national unity amid the ongoing conflict in West Asia, which included a recommendation to refrain from gold purchases for a year, the gold industry has expressed both apprehension and a quiet sense of resilience.
Abhay Gadgil, a representative from the Pune Saraf Association (PSA), emphasized the deep-rooted cultural connection between Indians and gold, stating, “For many, gold is not merely an asset but an emotional anchor. This connection is unlikely to diminish.” He noted that various jewellery associations are likely to discuss the implications of this appeal and consider engaging with government officials at a broader level.
Vipul Ashtekar, a partner at KRA Jewellers, highlighted the potential impact on countless small artisans who rely on the gold trade for their livelihoods. “A year without gold purchases could lead to significant financial strain. I believe the Prime Minister’s intention was more about moderating spending on luxury items than completely halting gold purchases,” Ashtekar stated.
The Prime Minister’s address aimed to raise awareness about the importance of conserving foreign currency. His suggestions for limiting overseas travel and promoting work-from-home arrangements are part of efforts to preserve dollars and alleviate pressure on fuel prices.
India is the second-largest gold consumer globally, importing a significant amount from countries such as Australia and South Africa. In the fiscal year 2025-26, gold imports reached $72 billion, reflecting a 24 percent increase from the previous year, all of which is paid in dollars.
According to Gadgil, gold continues to attract investments due to its association with financial security. “People find comfort in gold as an investment. Recent trends have shown promising returns, and fluctuations in stock markets have reinforced the perception of gold as a stable asset,” he added.
The gold industry remains hopeful despite the Prime Minister’s remarks, as there appears to be no viable substitute for gold among various investors, whether individuals or institutions. Gadgil expressed confidence that sales would continue, stating that consumers would still seek gold items that fit their financial plans.
He illustrated gold’s enduring allure by noting that even with the escalation of military tensions involving the US, Israel, and Iran, gold prices surged. “However, over the past six weeks, prices have stabilized. We experienced a strong sales performance during Gudi Padwa and Akshay Tritiya, and we anticipate similar success during the wedding season as people continue to engage with gold purchases,” Gadgil remarked.
Dipanita Nath serves as a Senior Assistant Editor at The Indian Express in Pune, where she covers a range of topics, particularly focusing on cultural intersections, sustainability, and urban dynamics. With a background that includes experience at notable news organizations such as Hindustan Times, The Times of India, and Mint, her expertise lies in areas including climate change, performing arts, heritage conservation, and the startup ecosystem.
Her recent work has shed light on Pune’s cultural vibrancy and environmental issues, featuring articles on the city’s cold weather impact, citizen-led heritage initiatives, and significant legal developments regarding urban pollution.
Nath’s storytelling often uncovers underreported narratives from Pune, exploring historical institutions, local customs, and the personal stories of social innovators. Her journalism is characterized by an intellectual curiosity and a narrative-driven style that connects readers with the heart of Pune.
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