Sombre prices may boost gold sales on Akshaya Tritiya day

Author: Paul Ploumis

 

20 Apr 2015 Last updated at 08:08:42 GMT

 

NEW DELHI (Scrap Monster): The jewellers across India expect big boost in gold sales on Akshaya Tritiya Day which falls on April 21st (tomorrow). The gold prices are currently at their two-year lows. The trade expects no big rise or fall in gold prices ahead of the auspicious day. The jewellers hope for at least 25% jump in gold sales in comparison with the previous year. Indian jewellers in the Middle East expect gold sales to double this year.

 

According to jewellers, heavy rush was witnessed in gold retail outlets in the run up to the festive day. Customers turned up in large numbers to place advance orders for gold and silver jewellery to be delivered on the Akshaya Tritiya day. Huge crowds were noticed in jewellery shops from Saturday itself.

 

Two factors are believed to lead to increased gold sales this year. Firstly, prices of the yellow metal are at significantly lower levels when compared to the previous year. Gold is currently selling at a rate of nearly Rs 26,000 to Rs 27,000 per 10 grams, when matched with the prices of over Rs 30,000 per 10 grams during last year. In addition, favorable monsoon season in the country is likely to result in increased rural buying, jewellers hoped.

 

Jewellers across the country have announced various offers to lure customers. For instance, some have cut the wastage charges on gold by almost half. As per market reports, jewellers have introduced wide range of new lightweight models of gold jewellery with antique designs.

 

Meantime, a section of overseas Indian jewellers feels that the charm of the festivity has diminished over the years. The gold jewellery sales have dropped sharply during the past few years, when compared with those during 2005 and 2006.

 

Akshaya Tritiya, the third day of the bright-half of the lunar month of Vaisakha is considered one of the most sacred days of the year. Purchasing valuable items such as gold on this day is believed to bring prosperity and success throughout the year.