Faced with soaring gold prices, jewellers are keeping their fingers crossed that everything goes well on Akshaya Tritiya, which falls on Saturday
With 24-carat gold ruling at over Rs 61000 per 10 grams, jumping about 12 per cent this year, analysts expect subdued demand for the yellow metal.
“Though a major gold buying festival, this year, Akshaya Tritiya faces lifetime high prices of gold and a lukewarm response from consumers over the last few weeks,” Somasundaram P.R., regional CEO, India, World Gold Council, said.
He said since gold purchases are an inseparable part of Akshaya Tritiya, one can expect gold accumulation and small ticket purchases through digital platforms, which reinforce the urgent need for a regulatory framework for the segment.
“Recent tax changes have put gold funds at a disadvantage which could offer an unintended advantage to digital gold buying. However, given the strong cultural connect, any short-term softening of price could mean an Akshaya Tritiya surprise for jewellery demand.”
Pawan Gupta, director, of PP Jewellers by Pawan Gupta, said: “ We believe Akshaya Tritiya sales should overcome the obstacle of price hikes. In India, gold has a strong economic connotation associated with auspicious festivals, and millions of people would customarily acquire gold on Akshaya Tritiya, at the very least making a token purchase.”
Jewellers have come out with innovative offers: Senco Gold is giving a 50 per cent discount on making charges, while Tanishq is offering a 20 per cent discount.
Ajoy Chawla, CEO of — jewellery division at Titan Company Limited — said “we are witnessing and expecting a positive consumer sentiment this Akshaya Tritiya festive period, particularly in the last 4-5 days post the offer period rolled-out”.
“Amidst a volatile gold price environment, Tanishq has also launched a gold rate protection plan for this month, allowing customers to book in advance and shield themselves from volatility.”
“Consumers are wary of buying the yellow metal at the present price. Even though the prices have come down a little bit since then, prices remain bullish. This will affect the sales during Akshaya Tritiya. We expect a 20 per cent dip in volume from last year,” All India Gem and Jewellery Domestic Council (GJC) chairman Saiyam Mehra said.
Former GJC chairman and NAC Jewellers (Chennai) managing director Anantha Padmanabhan said the high prices will have an impact on demand.
“We are already seeing the impact of the sudden rise in gold prices and we expect a 10 per cent decline in sales in terms of value this Akshaya Tritiya compared to last year. In terms of volume, we are expecting a 20 per cent decrease in demand.”
However, if there is a sudden dip in gold prices it will boost sales, he added.
Analysts expect demand for digital gold — where one can invest starting as low as Re 1 — to rise this season.
Data showed gold imports plunged 24.15 per cent in 2022-23 to $35.01 billion from $46.16 billion the previous fiscal as factors such as an increase in import duties, global uncertainties and rising prices took a toll.
In March, imports posted a steep rise of 216.75 per cent to $3.3 billion from a year ago, partly because of a base effect and expectations of demand during Akshaya Tritiya.
With inputs from PTI
