Bafleh Jewellery Shifts to Lightweight Gold Amid Rising Prices

Bafleh Jewellery, one of the Middle East's leading importers of Indian jewellery, is adapting to rising gold prices by switching to lightweight designs and lower-karat gold. This change comes as bullion prices continue to climb, impacting consumer demand in key markets.

Managing Director Ramesh Vora reported that the company imported 600-700 kilograms of jewellery from India in the first eight months of this financial year, a drop from 1.2 tonnes last year. Despite increased import values, volumes have decreased by 20-30% due to the price surge of gold from USD 2,200-2,500 per ounce to USD 3,600 within three months.

Bafleh plans to introduce 14-karat jewellery next month, collaborating with suppliers in Kolkata and Delhi to preserve colour quality while lowering gold content. Although part of Dubai's Special Import Promotion Authority arrangement with India, rising bullion prices have reduced business by 30-40% overall.

(With inputs from agencies.)