High inflation, Ukraine crisis boost jewellery sales on Akshaya Tritiya

Jewellers of Kolkata are happy on the auspicious day of Akshaya Tritiya to witness a footfall jump of 30-40 per cent compared to normal days as soaring inflation, the Ukraine crisis, besides religious sentiments, influenced people to purchase gold and bullion as assets.

Shops this year ordered calendars and sweetmeats for guests which were absent in the last two years owing to the Covid-19 pandemic and lockdowns.

We witnessed tremendous response for gold jewellery as well as bullion in this Akshaya Tritiya. Besides religious sentiments, people are cautious in spending on discretionary and luxury items and tourism, realising benefits of gold, India Bullion and Jewellers Association West Bengal president Ashok Begani told PTI.

 

Moreover, he said, a section of customers said that the Ukraine-Russia war is a reminder for them that if a family is displaced, assets like gold can be taken along and not real estate properties which have to be left behind.

Customers are going for gold jewellery and bullion as a hedge against high inflation. The volatility in the stock market also made it conducive to the attraction for the yellow metal. As per feedback, people have doubled their investments in gold jewellery and bullion from 25 per cent to 50 per cent of their investable surplus funds, he said.

Swarna Shilpa Bachao Committee Secretary Bablu Dey said there is a steady improvement in customer flow since morning.

We expect at least a 20 per cent rise in sales compared to normal days, the office-bearer of the organisation representing small jewellers said. All jewellers acknowledged that there is a sharp jump in business compared to the Covid years. However, overall business is yet to come to normal compared to pre-covid times, said the proprietor of R N Dutta's Grandson, a jewellery shop in south Kolkata's Gariahat area. Senco Gold & Diamonds MD Suvankar Sen said the year may see a strong uptrend in demand.

Sanjay Karmakar, the owner of a small shop in Dhakuria area, said there is no remarkable improvement in sales.

My shop caters to the low-income group and high gold price is a major headwind for this segment of the population. We are inviting people and will distribute sweets which will help in revitalising customer connect hoping for better days," he said. Both jewellery chains and single-brand stores are running schemes and discounts on making charges and gifts to promote sales.

There has been positive sentiment in the market for the last 10-15 days and this should continue on the auspicious day of Akshaya Tritiya, All India Gem and Jewellery Domestic Council Vice-Chairman Shyam Mehra said.