Gold shines brighter on Akshaya Tritiya, demand surges 30%

Due to more preference for lower price jewellery, number of customers was 50% to 60% higher

Jewellers called Akshaya Tritiya on Friday to be the best they have had since 2013, with demand rising 30 per cent as compared to last year in volume terms.

The number of customers was 50-60 per cent higher, due to a greater preference for lower-price jewellery, in the range of Rs 30,000-50,000.

Somasundaram P R, India managing director for the World Gold Council, said: “Festive sentiment among both trade and consumers appears to be stronger this Akshaya Tritiya as the industry emerges steadily from a period of sluggishness during and immediately following demonetisation. Gold’s attractiveness as a preferred asset class is enhanced this season by an appreciating rupee and its impact on price, as well as a sharp rise in stock markets. Various trade offers and promotions point towards increasing momentum, though challenges remain regarding the transition to GST (the coming national goods and services tax) in the next quarter.”

Last year on Akshaya Tritiya day, gold sale was estimated at 17 tonnes by GFMS Thomson Reuters. This was valued at around Rs 5,000 crore.

Asher O, the head of India operations at Malabar Group, a leading jewellery chain from South India, with 176 retail stores of which half are in this country, said: “We see good demand today and expect 30 per cent higher buying than last year. Footfall is quite huge with people buying small-ticket jewellery.”

The price of gold in India is three per cent less than a year before. In this calendar year so far, the price in international markets has rallied by 10 per cent but the Indian price is up only 3.7 per cent, due to a stronger rupee. 

Tanya Rastogi, director at Lala Jugal Kishore, Lucknow, a UP-based jeweller, said: “Up north, Akshaya Tritiya is divided into two days this time, from Friday afternoon and well into Saturday, a huge advantage. Quantum demand is up around 25 per cent from last time till now. Smaller items are more in demand.”