Raksha bandhan: Gold prices does not change Rakhi trends

Phenomenally high gold prices are not going to be a wall between brothers and sisters this Rakshabandhan. The price of the yellow metal has risen by almost 50% compared to last year but sisters have come up with a solution. Instead of buying a rakhi with 1 gram of gold, sisters are opting for 0.5-gram or 0.75-gram thread rakhis. The demand for gold rakhis has fallen marginally by 15% this year.

"The demand for gold and gold jewellery has certainly fallen. But it is not going to affect the love of sisters for their brothers on the auspicious day of Rakshabandhan," said president of Ahmedabad Gold-Sliver Jewellery Traders' Association, Nanalal Soni.

"Last year, with gold priced around Rs17,000 for 10 grams, the 1 gram thread of rakhi cost around Rs1,700. Today, the price has shot up to Rs26,500 and so the same rakhi will cost more than Rs2,600. But this year, we have seen demand for lesser weight golden rakhis," he said.

For sisters who have been tying golden rakhis to brothers for the past many years, it is important to buy the golden thread, believes Soni. "Looking at demand, jewellers have made lighter weight gold rakhis, weighing 0.5 gram or 0.75 gram, which cost around Rs1,500 to Rs2,000. With this, the budget remains the same and the age-old custom can be maintained," said Soni.

Affirming this, the president of Gem & Jewellery Trade Council of India (GJTCI), Shanti Patel said that the demand for gold rakhis has not fallen compared to the decline in jewellery sales. "Compared to last year, the demand for golden rakhis might have gone down by 10% to 15%," said Patel.