Gold jewellery sales are estimated to have risen by 10-20 per cent on the auspicious day of 'Akshaya Tritiya' today, even as the precious metal's price fell in all major cities...
Gold jewellery sales are estimated to have risen by 10-20 per cent on the auspicious day of ‘Akshaya Tritiya’ today, even as the precious metal’s price fell in all major cities by around Rs 100 per ten grams.
Jewellers and bullion traders said retail demand remained robust in most parts of the country as prices have declined by about 10 per cent from last year’s ‘Akshaya Tritiya’, which is considered an auspicious day to buy gold.
In South India, which contributes about 60 per cent of total sales on this day, gold sales remained brisk.
In some parts of the country, good demand was seen for diamonds as well due to less price volatility, jewellers said.
In the National Capital, gold prices fell by Rs 100 to Rs 27,100 per 10 grams. Similar was the trend in other cities.
Delhi-based Khanna Jewellers’ Chairman Vijay Khanna said sales are up by 10-15 per cent and are better than last year.
“Jewellery sales are 12 per cent higher on year-to-year basis as prices are down by 10 per cent at Rs 26,800 per ten grams today as compared with Rs 30,200 per ten grams in the year-ago,” Mumbai-based All India Gems and Jewellery Trade Federation Chairman Manish Jain said told PTI.
He, however, said that sales of gold coins and bars for investment purpose were lower by almost 25-30 per cent.
Madras Jewellers and Diamond Merchants Association President Jayantilal Challani said, “The response has been very good and as good as it was last year.”
Kerala-based Kalyan Jewellers, which has 66 stores across the country, said it expects a sales growth of 5-7 per cent in each store.
“Sales are very good. Seeing the trend from the morning, we expect 5-7 per cent growth in sales in each of our store. But our overall growth in revenue would be 30 per cent as the company has opened 11 new stores,” the company’s Director Rajesh Kalyanaraman said.
Kolkata-based PC Chandra Vice-President (Marketing) Anil Jain said this year demand is higher by 15-20 per cent in jewellery.
Another Kolkata-based jeweller Nemichand Bamalwa and Sons Founder Partner Bachhraj Bamalwa said: “We have good sales. Around 15 per cent increase in jewellery sales. There is no great demand for coins and bars as people are not inclined to buy for investment purpose today”.
When asked about good sales in South India, Manish Jain said, “South is doing good because people wait for this auspicious day to buy jewellery. People are happy to buy at this rate.”
Jain also said that there was 20 per cent less demand in areas where there was crop damage due to unseasonal rains.
Fall in prices and shift in buying to organised retail stores from unorganised sector are reasons behind surge in sales, he said, adding that since people prefer to buy gold in South, 80 per cent sales are of gold jewellery.
World Gold Council (WGC) India Managing Director Somasundaram PR said, “What we have seen till now in the market, it appears that demand is much better than last year.”
Gold prices in Mumbai, however, declined by Rs 45 to Rs 26,695 per 10 grams. Similarly in Kolkata, gold fell by Rs 105 to Rs 27,105 per 10 grams, while in Chennai it declined to Rs 27,020 per 10 grams from last close of Rs 27,200.
India, the world’s largest consumer of gold, imports 800-900 tonns of precious metal annually. Anticipating higher demand during ‘Akshaya Tritiya’, gold imports jumped to 125 tonnes last month from 60 tonnes in the year-ago.