Gold sales to rise 25 percent on Akshaya Tritiya

New Delhi/Mumbai/Chennai/Bengaluru/Kolkata, April 21:

To usher in good luck in their lives on the occasion of Akshaya Tritiya, buyers have already started trickling in at various jewellery shops on Tuesday and retailers expect sales to be higher by 25 percent over a usual day.

Akshaya Tritiya is a holy day for Hindus and Jains, and is believed to bring good luck and success in whatever endeavour one undertakes on this day. It is considered to be auspicious to bring home gold on this day.

“We have been hard-selling Akshaya Tritiya for a week as many customers prefer to buy their favourite ornaments ahead of the auspicious day to avoid crowd and last-minute rush,” Deepak Jain of Dhanalakshmi Jewellers in Bengaluru told IANS.

Many customers, however, will collect the ordered ornaments on Tuesday.

Pankaj Parekh, vice-chairman of Gems & Jewellery Export Promotion Council, told IANS that sales are expected to be higher across the country as in March the import of yellow metal was on the higher side.

According to reports, India’s gold imports more than doubled to 125 tonnes in March from 60 tonnes in the same period a year ago.

“More than belief, it’s a sentiment among the Hindus to buy gold and silver ornaments on this day for personal use or gift them to their near and dear as a means of blessing or to wish them prosperity through the year,” Jain said.

“More and more people are now buying gold on Akshaya Tritiya day in Chennai which is a good sign for the industry,” Jayantilal Challani, president of the Madras Jewellers and Diamond Merchants Association, told IANS.

“This year there are a couple of positive points for the trade to expect at least 15 percent sales growth as compared to last year’s Akshaya Tritiya. The gold prices have come down this year. There is a difference of around Rs.2,200 per sovereign this year as compared to last year’s price,” Challani added.

In the national capital, gold price was hovering around Rs.27,000 per 10 grams on Tuesday. “We expect normal sales today (Tuesday) as people are not very confident of the price. In the past six to eight months, price has varied between Rs.26,000-Rs.27,000 per 10 grams. People will again start buying if prices fall sharply or rise,” Rahul Gupta, director of P.P. Jewellers in Delhi, told IANS.

He said that gold price has hovered around Rs.26,000 per 10 grams for quite some time and now it will only go up.

“Secondly, more shops have come up here which has led to the expectation that there would be newer jewellery designs. This year jewellery shops are not offering free pick-up and drop facilities unlike in 2014. Some jewellers offer free silver articles equal to the weight of gold purchased,” Challani added.

Leading gold and jewellery showrooms in Bengaluru, including Navarathan, Bheema, Lalithaa, Titan, Krishnaiah Chetty, Gitanjali Jewels, D’damas, Joyalukkas and Nakshatra, are all luring customers with attractive discounts and freebies.

“We are offering 20 percent discount on purchase of gold items between Rs.10,000 and Rs.50,000 and 25 percent discount on purchase of Rs.50,000 and above,” a sales executive of Gitanjali Jewels told IANS.

With diamonds becoming popular among the upwardly mobile and youth, many retail outlets selling the sparkling rocks are offering free gold coins of 2-5gm or 25g silver coin or item for purchase of one carat diamond.

Jewellers reported brisk sale in gold jewellery in Mumbai on the auspicious occasion of Akshaya Tritiya.

“Pure gold biscuits are priced at Rs.27,999 per 10 grams while 22 carat gold jewellery is going at Rs.26,500. By noon, our members have reported very encouraging trends as sales continue to be brisk,” Mumbai Jewellers Federation President Rakesh Shetty said.

He said the preference was for small gold jewellery like rings, earrings and chains, with some opting for bangles and heavy chains, too, and occasional pure gold biscuits also being sold.

“Prices are stable for the past 10 days at Rs.26,950 for 24 carat variety. We expect very good sales this time, compared to last time when prices had gone up to Rs.30,000-Rs.31,000,” Prayas Dugar, director, Indian Gem and Jewellery Creation, told IANS.

“This year, there can be an increase on volume by 15 to 20 percent on account of Akshay Tritiya and we are expecting good demand on the jewellery segment, rather than gold and silver coins. People are focusing more on fancy and ornamental jewellery rather than the traditional ones,” he added. (IANS)