Soaring prices may hit gold sales on Akshaya Tritiya

Mumbai: Akshaya Tritiya, considered an auspicious day to buy gold, is likely to be lacklustre this time as jewellers are expecting negative to marginal growth compared to last year, on the back of rising gold prices, which is ruling at over Rs 30,000 per 10 grams.

"During Akshaya Tritiya (which falls on May 9) we are expecting marginal growth in sales compared to last year as the prices are ruling very high and due to the present dry weather conditions in the country," All India Gems and Jewellery Trade Federation (GJF) Chairman Sreedhar G V told PTI here.

He said even as the overall market sentiment is positive, the surge in gold prices is likely to put a halt on consumer demand for heavy jewellery and people might go for small ticket size items, chains and bangles. Gold is currently ruling at Rs 30,050 per 10 grams in domestic market. In February first week it was at Rs 26,930.

Echoing a similar view, former GJF Chairman Bachhraj Bamalwa said in terms of volume, the consumer demand might witness a negative growth of about 10 per cent, but in value terms it is likely to be at par with last year's sales.

"There will be buying as people will purchase a token small ticket size jewellery or coin for the festival and they will hesitate to go for heavy pieces due to high prices," he said. As for wedding jewellery, he said, usually consumers book for bridal jewelleries before one month for which most of the bookings were already done just after the strike ended.

"Bridal and wedding jewellery takes time so we usually get most of the bookings before one month. We got most of the wedding jewellery bookings just as the strike ended," he said. However, World Gold Council (WGC) MD Somasundaram PR felt that there will be sharp hike in demand during Akshaya Tritiya, where wedding jewellery as well as investment-related items like coins, bars will also move fast.