Amid price rise, 20% dip in gold sales likely this Akshaya Tritiya

Mumbai, April 20

The recent surge in gold prices, which is hovering around Rs 60,000 per 10 gram, is likely to dampen consumer demand this Akshaya Tritiya, with jewellers expecting a 20 per cent decline in sales in volume terms.

“Gold prices crossing Rs 60,000 per 10 gram recently has made consumers wary of buying the yellow metal. Even though the prices have come down a little bit since then, prices remain bullish. This will affect the sales during Akshaya Tritiya, considered auspicious to buy precious metals. We expect a 20 per cent dip in volume from last year,” All-India Gem and Jewellery Domestic Council (GJC) chairman Saiyam Mehra said.

Recent price rise

We are already seeing the impact of the sudden rise in gold prices. In terms of volume, we are expecting a 20 per cent decrease in demand. —Saiyam Mehra, All-India gem and jewellery domestic council chairman

During Akshaya Tritiya, 40 per cent of the business is done in the south, 25 per cent in the west, 20 per cent in the east and the remaining 15 per cent in the north, he said.

Currently, the gold price is ruling at Rs 60,280 per 10-gram level in the domestic market.

Echoing a similar view, former GJC chairman and NAC Jewellers (Chennai) Managing Director Anantha Padmanabhan said that the ruling high gold prices would have an impact on demand this Akshaya Tritiya.

“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,” he added.

However, if there is a sudden dip in gold prices, it will boost sales, he said.