Jewellers' margin set to take a hit as gold leasing rates surge

THE GOLD LEASING rates have shot up sharply as a tariff scare from the Trump administration has prompted global banks to secure the precious metal, leading to a supply crunch in India, among the top consumers of the metal.

- VIVEAT SUSAN PINTO

From 2-3% earlier, the rates have jumped to levels of about 6-7% in a month, which is likely to hurt the margins of organised jewellery players such as Titan, Senco, Kalyan Jewellers and PN Gadgil among others, sector experts said.

Given the Trump administration's approach to tariffs, the jewellery firms anticipate a further increase in the rates.

"Gold leasing rates have more than doubled due to the trade and tariff wars. This will put pressure on margins. We are monitoring the situation," Kiran Firodiya, chief financial officer, PNG Jewellers said in a conversation with FE.