Gold prices have been on a strong rally this year… yet major gold and jewellery stocks have been falling sharply. SENCO GOLD – Down 54% from its 52 week high KALYAN JEWELLERS – Down 33% from its 52 week high THANGAMAYIL JEWELLERY – Down 19% from its 52 week high PN GADGIL JEWELLERS – Down 11% from its 52 week high So what’s going on? High Gold Prices ≠(NOT EQUAL TO) Higher Demand: When gold prices shoot up, jewellery demand often drops — especially in price-sensitive markets like India. People postpone buying, impacting sales volumes. Low Margins for Jewellers: Jewellery companies don’t benefit directly from rising gold prices since most of their profit comes from making charges, not gold itself. Inventory Costs & Working Capital: High gold prices mean more money stuck in inventory, increasing financing costs for retailers. Rising gold prices may glitter for gold investors — but not necessarily for jewellery stockholders.