Will high gold prices dampen Akshay Tritiya? What are jewellers doing to boost sales

Jewellers are anticipating shopper demand to be pushed by mild weighing ornaments on this Akshaya Tritiya, as gold prices are hovering to the historic highs of Rs 1 lakh.
Akshay Tritiya, set to be celebrated on April 30, is taken into account an auspicious day to purchase gold, therefore typically bringing a surge within the yellow steel’s purchases throughout India. However, with present charges testing shopper endurance, the trade is adapting to the temper with smaller, extra inexpensive designs and a wider vary of merchandise.
“As we approach the auspicious occasion of Akshaya Tritiya, the gold market is buzzing with anticipation,” mentioned Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council (GJC). “Akshaya Tritiya holds immense cultural significance in India, traditionally marking a surge in gold purchases.”
Despite the skyrocketing prices, this 12 months may nonetheless present a wholesome demand pushed by mild weight gadgets, Rokde additional instructed PTI.
Gold traded weak at Rs 95,075 per 10 grams on Friday on MCX, as worldwide prices confronted resistance close to the $3,330-an-ounce mark. Still, the symbolic worth of gold is anticipated to outweigh short-term hesitation from patrons.
Would high gold prices weaken the festive sentiment?
Rokde mentioned that regardless that some customers is perhaps hesitant, the enchantment of gold as a safe-haven asset and the steel being an integral a part of traditions will doubtless translate into optimistic sales.
To additional boost the sentiment, the jewel trade can be rolling out a various vary of things for purchasers to select from, catering to a spectrum of budgets and preferences, he mentioned.
Avinash Gupta, GJC’s vice-chairman additionally echoed the same view, saying, although high prices would possibly immediate some to resort to warning, the cultural significance of the yellow steel, aided with its standing of being a dependable asset, would in the end recommend an upward development in shopping for.
“High prices may keep the volume demand either the same as last year or bring it down by 10 per cent. The jewellery sector is showcasing innovative designs alongside classic pieces to cater to diverse consumer needs,” he added.
“Gold purchases have traditionally been an integral part of Akshaya Tritiya celebrations for millions of Indians, symbolising prosperity and good fortune,” mentioned Sachin Jain, regional CEO, India, World Gold Council.
“We are currently witnessing sky rocketing gold prices – ‘gold’s era’. This year marks a significant period for gold, with global prices increasing by 25 per cent since January and reaching a record high of $3,500 per ounce.”
From conventional patrons to digital-savvy traders, demand is anticipated to span throughout jewelry, cash, bars, gold ETFs, and digital gold.
Saurabh Gadgil, chairman and MD of PNG jewellers, mentioned the festive buzz is undeterred by high prices. “Volume has been under pressure for quite some time as the gold prices continue to soar. However, with Akshay Tritiya falling at the cusp of a packed wedding season, we are optimistic that it will mirror the encouraging performance we saw during Gudi Padwa. We anticipate a strong turnout both for fresh purchases and for deliveries scheduled on the day,” he mentioned.
Gadgil anticipated outdated bars and cash to carry out effectively as customers proceed to take a look at gold as a secure, long-term asset. “The next 10 days will be crucial in shaping momentum, but all indicators point to a promising Akshay Tritiya ahead,” he added.”