Impact of Record-High Gold Prices in East London
Surrounded by glass-fronted display cabinets filled with shimmering gold bracelets and necklaces at London’s Pakeeza Jewellers store, manager Zahid Khan laments the impact of record-high prices of the precious metal.
“People are obviously buying not as much as before,” Khan told AFP as his sales staff weighed gold necklaces and tapped into calculators, adding there had been a “big increase” in prices.
Traditional Gift and Investment
Gold products, including rings and other trinkets, are a traditional gift for births, weddings, and other family celebrations because the precious metal is regarded as an inflation-proof investment that will stand the test of time.
Price Volatility Challenges for Jewellers
For jewellers, the worst aspect of the price surge is the volatility, as customers wait for prices to drop before making purchases. Most Green Street jewellers are constantly calculating their own product prices based on the daily gold-price fix published by industry bodies, complicating their business operations.
Cultural Impact on Gold Purchases
It is quite common for Asian families to keep track of gold prices as a way of staying informed, similarly to knowing the price of petrol. The cultural significance of gold as an investment and gift is deeply ingrained in many Asian communities, influencing their purchasing decisions.
Adaptability in the Market
Some jewellers, like PureJewels on Green Street, adjust their prices regularly to provide stability and cater to customers looking for higher-end products with less exposure to the gold market. This adaptability allows them to maintain a stable customer base even during price spikes.
“Green Street has become the destination shopping for customers who are wanting to do their wedding shopping of South Asian style,” said Jayant Raniga, the boss of PureJewels, highlighting the area’s cultural significance and unique offerings.
