Akshaya Tritiya fails to improve gold sales

The festive occasion of Akshaya Tritiya last week failed to improve gold sales, with actual volumes sold down to 45 tonnes from last year’s 48.9 tonnes.

However, the high prices of gold ensured that sales in value terms were 14 per cent higher at Rs 7,280 crore than last year’s Rs 6,395 crore, according to the World Gold Council (WGC).

A jeweller from Mumbai added that “at least 20 per cent of sales was, in fact, replacement of old jewellery.” If this is taken into account, then fresh Akshaya Tritiya sales were even lower.

On April 27, the day of the festival, which is considered an auspicious occasion to buy gold, the prices of the metal were around Rs 14,800 per 10 gm. Last year, Akshaya Tritiya was celebrated on two days across May 7-8 with prices hovering around the Rs 11,800 mark.

But an executive of WGC said that, “in the current economic scenario, the sales should be seen as a positive development as consumers spent more money compared with what they did last year on this occasion.”

“In association with WGC, jewellers across the country offered various promotions on Akshaya Tritiya, with stores witnessing an expansion of customer bases. Jewellery stores reported an increase in both volume and value, as opposed to previous Akshaya Tritiyas, thus indicating a strong consumer preference for hallmarked jewellery retailed through these stores,” the council said in a statement.

However, after Akshaya Tritiya, gold prices have again started moderating. Also, profit-booking in exchange-traded funds’ has also resulted in a price fall globally. But, according to traders, prices are still perceived to be high which is expected to further delay a demand for the yellow commodity.