 "A saleswoman shows a gold earring to customers at a jewellery showroom in Mumbai. Photo: Reuters")
Jewellery sales are likely to remain weak this year on Akshaya Tritiya, considered the most auspicious day to buy gold, due to a sharp rise in the price of the metal and a delayed wedding season.
The price of gold is expected to remain at around Rs 30,000 per 10 gm on Monday, 10 per cent higher than the Akshaya Tritiya a year ago in April 2015. Gold has spurted in the last few days to hit its highest in 15 months.
Weak sentiment coupled with several restrictions by the government to discourage buying could deal a blow to jewellers who are seeking strong sales after 42 days of strike over a 1 per cent excise levy.
“Gold jewellery sales are expected to remain low this year on rising prices. Frequent policy changes may also deter consumers,” said Kumar Jain, director, Umedmal Tilokchand Zaveri, a Zaveri Bazaar-based jewellery manufacturer.
| Prices on occasion of Akshaya Tritiya | |
| Akshaya Tritiya date | Price (Rs/10 gm) |
| Apr 21, 2015 | 26,960 |
| May 2, 2014 | 28,815 |
| May 15, 2013 | 26,825 |
| April 24,2012 | 28,852 |
| May 6, 2011 | 21,701 |
| May 16, 2010 | 18,167 |
| April 27, 2009 | 14,624 |
| Source: Trade | |
“Consumers have not purchased gold for nearly two months. So, they will definitely come to buy. Sales may rise 10-15 per cent this year. Had everything been normal, jewellery sales could have been 80-90 per cent higher on the occasion of Akshaya Tritiya,” said Sreedhar GV, chairman of the All India Gems and Jewellery Trade Federation.
India is facing a water shortage after two successive deficient monsoon seasons, resulting in weak sentiment across all sectors.
Jewellers are offering up to 50 per cent discount on making charges of gold and diamond ornaments. MMTC Pamp, India’s largest gold refiner, has also introduced the ‘tola’ gold bar.
