How Tanishq’s Gold Exchange Scheme Works Amid PM Modi’s Call To Avoid Gold Buying
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PM Narendra Modi urges citizens to avoid new gold purchases, Tanishq promotes a gold exchange programme letting customers swap old jewellery for new.
Gold import can be dissuaded by promoting gold exchange programme where consumers exchange their old jewellery with new ones at gold shops
As Prime Minister Narendra Modi urged citizens to avoid buying gold for a year to help reduce forex outflow and ease pressure on imports, attention has shifted towards gold exchange programmes offered by jewellers as an alternative to fresh purchases.
While the pitch is seen as a measure to hinder the forex outflow, as India is one of the biggest importers of gold, this, however, poses a challenge of livelihood and survival for the entire sector across the country. A hundred of thousands of people earn their daily bread in the gold industry.
In such case, gold exchange programme is been championed as an alternative way to not only stop gold import, the culprit behind the forex outflow, but also to run the industry without prompting a large-scale job disruption.
Among the major players, Titan Company-owned Tanishq has been actively promoting its gold exchange programme, allowing consumers to convert old jewellery into new ornaments without making entirely fresh gold purchases.
How Does It Work?
According to details available on Tanishq Gold Exchange, customers can bring old gold bought from any jeweller to a Tanishq store. The company says the gold first undergoes a purity check in front of the customer, after which the ornament is melted and assessed for final weight and purity.
Tanishq claims that old gold with purity as low as 9 karat can also be exchanged. The assessed value is then adjusted against the purchase of new gold or diamond jewellery. The company also advertises “flat 0% deduction” on exchange of old gold bought from any jeweller, subject to terms and conditions.
The programme is being positioned as a way for households to monetise idle gold holdings instead of purchasing entirely new bullion or jewellery that would require additional imports. India remains one of the world’s largest gold importers, and rising imports often widen the current account deficit while increasing dollar outflows.
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