The current surge in gold costs, which is hovering round Rs 60,000 per 10 grams, is probably going to dampen shopper demand this Akshaya Tritiya, with jewellers anticipating a 20 per cent decline in gross sales in quantity phrases.
“With gold costs crossing Rs 60,000 per 10 grams lately has made customers cautious of shopping for the yellow steel. Even although the costs have come down just a little bit since then, costs stay bullish. This will have an effect on the gross sales throughout Akshaya Tritiya, thought-about auspicious to purchase treasured metals. We count on a 20 per cent dip in quantity from final 12 months,” All India Gem and Jewellery Domestic Council (GJC) chairman Saiyam Mehra told PTI.
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 value is ruling at Rs 60,280 per 10 grams stage in the home market.
Echoing a similar view, former GJC chairman and NAC Jewellers (Chennai) Managing Director Anantha Padmanabhan said that the ruling high gold prices will 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’s a sudden dip in gold costs it is going to increase gross sales, he added.
Commtrendz Risk Management Services CEO Gnanasekar Thiagarajan stated the gold costs, that are presently ruling at Rs 60,280 per 10 grams stage, although bullish, are doubtless to stay secure for someday.
“At current, there aren’t any main triggers to make gold costs unstable, just like the US financial information. Even, the present geopolitical scenario just like the Russia-Ukraine battle and oil costs, amongst others haven’t affected the gold costs lately,” he said.
It always takes time for consumers in India to get used to the surge in gold prices, therefore, the demand is likely to remain lower during Akshaya Tritiya this year, he added.
World Gold Council Regional CEO, India, Somasundaram PR said that gold purchases are an inseparable part of Akshaya Tritiya celebrations for millions of Indians. It is considered a sign of prosperity, and it signals the start of seasonal buying.
“Though a major gold buying festival, this year Akshaya Tritiya faces life-time high prices of gold and a lukewarm response from consumers over the last few weeks. We could see gold accumulation and small ticket purchases through digital gold buying platforms see faster growth, reinforcing the urgent need for a regulatory framework for these,” he stated.
Recent tax modifications have put gold funds at a tax drawback which may provide an unintended benefit to digital gold shopping for. However, given the sturdy cultural join, any short-term softening of value may imply a Akshaya Tritiya shock for jewelry demand,” he added.
Kama Jewelry MD Colin Shah said after a dull-performance during the two years of pandemic, the sheen is back to the gold industry.
“Gold prices have witnessed highs in the recent past. Overall during this year, consumers are expected to be more cautious with their purchases due to the backdrop of rising gold prices and economic uncertainty, whereas the investor class will bank on the highly probable opportunity of rising gold prices in the time to come,” he added.
Antara Jewellery MD Ankit Gala stated due to a rise in the worth of gold, there could also be a lower in the quantity of gold purchases this time as in contrast to the earlier 12 months.
“However, we anticipate good gross sales as many imagine that purchasing gold on at the present time brings luck and prosperity. Buyers could go for gold cash, bars, or digital gold slightly than jewelry items, as they could see gold as a retailer of worth or a hedge in opposition to inflation. We also can see a shift in their shopping for decisions for issues like diamonds and gems, that are thought-about inexpensive choices for gold,” he added.
However, PNG Jewellers Chairman and Managing Director Saurabh Gadgil said that this year Akshaya Tritiya falls on a Saturday and customers will get an added advantage of it being on a weekend.
“We are bullish about this year’s Akshaya Tritiya. Gold prices are expected to stabilise and stay within the Rs 60,000 mark, which will definitely help boost sales in gold and silver. This year, we expect a 10 per cent hike in business in quantity terms,” he added.
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