Jewellers react to rising gold prices

According to Sanjay Kothari, Chairman, All Gems and Jewellery Export Association, "People are buying gold as it is a requirement for marriage. There is also a shift though, as some opt for other gems like diamonds. Diamond sales have increased by up to 80%."

Jewellers like Alpesh Thadeshwar and Samad Motilal say this is a "wait and watch" period, and advise consumers to put buying on hold until prices stabilise. Motiwala says the only people profiting right now are speculators who invest in stock markets. They are the ones who buy paper gold and are gaining profits.