UK South Asian Jewellers Thrive as Gold Prices Surge Amid Economic Uncertainty
In the heart of Leicester, along the bustling stretch known as the Golden Mile, a remarkable business boom is unfolding. South Asian jewellers are witnessing relentless demand for gold, driven by soaring prices and economic uncertainty. Sandeep Kanda, owner of Sunny Jewellers, encapsulates the sentiment: "By the end of the day we're just knackered. We are seeing a lot of people buying and selling. As the price of gold goes up, we get busy on both sides."
Economic Factors Fueling the Gold Rush
The surge in gold prices, which peaked at over $5,000 per ounce in late January, has been attributed to global economic instability, including geopolitical tensions and volatile markets. Kanda notes, "With everything that's going on in the economy and Donald Trump banging his chest against the world, we're finding there's no trust in the banks because we don't know what's going to happen." This lack of confidence in traditional financial institutions, compounded by the closure of local bank branches like Barclays and NatWest on the Golden Mile, has pushed consumers toward alternative investments such as gold.
Customers are snapping up 22-carat gold bars and coins or selling off unworn jewellery to capitalize on the high prices. Kanda explains, "It's making it harder and harder to get access to your money. But if I've got gold, I've got money." This trend is not isolated to Leicester; jewellers across the UK, including in London, report similar spikes in activity.
Cultural Significance and Investment Appeal
Gold holds deep cultural importance in south Asian communities, often used in weddings and as a form of financial security. Pravin Pattni, owner of Minar Jewellers in Tooting, south London, states, "People do like the idea of buying gold as a means of maintaining cultural traditions. And they know as well, in the back of their mind, that it is a sound investment." He adds that the high price of gold is "a blessing in disguise," as demand remains strong for events like weddings, with customers now spending up to £100,000 on jewellery compared to £25,000 a decade ago.
Jayant Raniga, owner of PureJewels in east London, observes that younger generations are investing in lightweight, everyday pieces or gold bars, while older family members sell traditional jewellery to support their children and grandchildren. "Customers are committed to buying gold," Raniga asserts, highlighting the enduring appeal of 22-carat gold for its malleability, sheen, and longevity.
Personal Stories and Market Volatility
The gold boom has led to poignant personal stories. Pattni recounts an elderly customer who sold a gold collection worth £200,000, accumulated since the 1970s when gold was 40p a gram, to fund his grandson's house deposit. "That's the beauty of gold," Pattni says. "Anybody who has put any money into gold, they're just laughing because they've made so much more money without having to do anything."
However, the market has seen volatility, with prices falling from a peak of $5,594 to $4,877 after political shifts affected investor sentiment. This uncertainty challenges jewellers in timing their stock purchases and sales. Despite this, the cultural and investment value of gold continues to attract a diverse clientele, including younger and non-Asian customers who are becoming more aware of its worth.
Looking Ahead: A Legacy of Value
Gemmologist Vishal Jogiya on the Golden Mile shares a touching anecdote of a father teaching his 10-year-old son about investing in gold. "That 10-year-old kid will remember buying this piece of gold. He's been taught the value in investments," Jogiya reflects. This intergenerational wisdom underscores the lasting impact of gold in south Asian families and beyond.
As economic uncertainties persist, UK south Asian jewellers remain at the forefront of a thriving market, blending cultural heritage with savvy investment strategies. The Golden Mile and similar hubs across the country stand as testaments to gold's enduring allure in times of flux.
