The Indian Jewellery Market experienced a moderate impact following the withdrawal of ₹2000 notes from the Indian Economy. Unlike the significant disruption caused by demonetization in 2016, there was a marginal increase in customers.

Demonetization which happened in 2016, affected the Jewellery market a lot. Back then there was panic in the market with effect to the immediate withdrawal of ₹500 and ₹1000 rupees notes from the Indian Economy.

As per some sources, This time also Jewellery market is affected but not in comparison to 2016. This may be due to the bank’s announcement of ₹2000 rupees note staying a legal tender for some period. 

In 2016, Jewellers saw panic buying in their customers as Indians refer to gold as a good investment option. In 2016, the price of this precious metal was also half of what it is now.

In a report by NDTV, Surendra Mehta, National Secretary at India Bullion and Jewellery Association Ltd, said that there is no huge rush just an increase in marginal customers. He also confirmed that customers are not buying high-valued jewelry to pay premium prices for gold. 

However, Odisha witnessed a rush in panic buying concerning RBI’s decision. The shopkeepers constantly witnessed a flow of customers with ₹2000 to buy the precious gold metal as a medium to invest. 

Even the filling stations saw an increase in customers as people bought fuel with pink notes. 

- Kratika Agarwal

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