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Saurabh V. Gadgil, PNG Jewellers discusses gold’s strong investment appeal, the impact of US tariffs on Indian exports, and the shift towards physical gold. Gold continues to retain its charm as an investment asset despite recent market turbulence, said Saurabh V.
Gadgil, MD and Chairman of PNG Jewellers in an interaction with News18. “During the January-March quarter, gold prices were on an upswing, primarily due to strong buying by central banks and federal governments," Gadgil said. He pointed out that the geopolitical uncertainty around that time, including the much-anticipated announcement of tariffs by former US President Donald Trump, created a highly volatile market.
While many assets tumbled amid the chaos, gold remained resilient. “Even when gold prices surged, there was no panic selling. Similarly, even with recent softness in prices, investor sentiment towards gold remains strong," he added.
Gadgil observed that bullion sales — particularly coins and bars — have continued to perform well. However, jewelry sales have felt some pressure due to tighter consumer budgets. “Grammage-wise, there has been a decline, but with new customers and new stores being added, the overall momentum has stayed positive," he explained.
PNG Jewellers, for instance, reported over 25% same-store growth in the last quarter. Further Correction Invites Fresh Buying Opportunity On US Tariffs And Impact On Indian Jewelry Exports Commenting on the recent announcement of a 27% tariff by the US on Indian jewelry and gem exports, Gadgil said this move could be a big blow to the industry. “At a combined duty of around 31% (existing + new tariffs), Indian exports to the US are no longer viable," he stated.
He explained that the US market heavily depended on India for lab-grown diamonds and handmade jewelry. With the higher tariffs, buyers may start shifting their sourcing to countries like Vietnam, Thailand, or the Middle East, where the duties are lower. “Right now, exports to the US have practically come to a halt," Gadgil said.
“We need to wait and watch. When asked whether prices would eventually rise for US consumers if the tariffs stay, he replied, “Unlike products like iPhones where there are fewer substitutes, gold jewelry has many alternatives. If Indian products become costly, customers may simply switch to local or other cheaper sources.
" On the Shift In Consumer Behavior: Investment vs. Lifestyle Talking about changing consumer behavior, Gadgil shared that in India, physical gold remains the primary choice for investment. “Indians still prefer physical gold — coins, bars, jewelry — over digital forms like ETFs or sovereign gold bonds," he said.
He also noted that while sovereign gold bonds launched by the Government of India gained some traction, the initiative has now been discontinued, pushing investors further toward physical assets. Gadgil believes that for Indian consumers, gold is still deeply tied to cultural values as well as investment needs. “It’s not just a lifestyle purchase; it’s viewed as a financial security in uncertain times," he concluded.
Akshay Tritiya 2025.
