Jewellery traders forecast sparkling sales this Akshaya Tritiya

- Akshaya Tritiya 2nd biggest gold buying festival after Dhanteras

- Token purchases will take place on this auspicious day

- Demand for wedding jewellery rising

- Buyers prefer jewellery lighter in weight

- Studded jewellery in demand

Hyderabad: This Akshaya Tritiya, diamonds-studded jewellery sales are expected to rise as retailers forecast a 20–25 per cent growth in terms of sales value. Due to the ongoing global economic uncertainty coupled with volatile Indian currency against the US dollar, gold price will oscillate between four-five per cent in price upswing, say experts. Akshaya Tritiya, an auspicious festival associated with wealth and prosperity, falls on April 22, 2023. It’s the second biggest gold buying festival for Hindus after Dhanteras. While token purchase will take place during this day, the high sales in terms of value will be driven by jewellery shopping for weddings lined up in the month of May.

“Just like every year, we are hopeful and are positive that the coming season will be fruitful for the industry. Overall, we are estimating that there will be a 20-25 per cent growth, in terms of value, over last year,” said Eshwar Surana, Managing Director, Raj Diamonds.

On sales trend, Surana said: “We are expecting good traction in high value diamond studded and wedding jewellery as there are a lot of weddings planned for this summer. We are also witnessing the demand for quality diamonds in the run-up to Akshaya Tritiya.”

Speaking with Bizz Buzz about the influence of gold price on a customer’s buying decision, Praveen Kumar, Secretary, Twin Cities Jewellers’ Association, said: “High price can be a little dampener for Akshaya Tritiya this time, in terms of sales value. There could be a correction of four to five per cent which could influence a buyer’s mindset that the price has gone down below Rs60,000. While Akshaya Tritiya sales will be pushed only by market correction, wedding shopping on the other hand is a compulsion. Here, sales in terms of grams might drop, but the value of the sale is anyway going to be high based on one’s spending capacity.”

The gold price on Wednesday (April 19) declined by Rs510 to Rs59,940 per 10 grams (24ct). From 2019, gold jewellers began speaking about profits and sales in terms of value. It’s the year when yellow metal touched a whopping Rs48,000 on an average thanks to trade war between the US and China, depreciating value of Indian rupee against the US dollar and investors using gold for hedging purpose. It was the year when jewellery became lighter in weight, meaning lesser grams of gold being used into making of an ornament.

On consumers’ choices, Praveen Kumar said that many women are attracted to studded jewellery besides trendy and light-weight gold designs. Clothing has majorly affected the purchase and selection of jewellery, he notes.

Rachitha Dundoo, a corporate professional and jewellery enthusiast, said: “Akshaya Tritiya is one such occasion that gives me an opportunity to buy gold. I personally see gold as both an investment and an ornament which reflects classic glamour, a significant fashion essential and carry generations-worth of value which resonates traditional sentiments. I prefer buying gold bangles, bracelets which are more of daily wear along with party jewellery. Gold solitaires are also something which interest me. Last year I invested in gold coins.”

Each year, the reason behind the increase in the price of gold has varied, the recent one’s being Russia-Ukraine war, US Fed rate increase and inflation. On every purchase, a consumer might feel the pinch but on a long-term basis, gold as a safe haven for investors has provided double digit profits, either in the metal or paper/digital form. In 1990, 24 karat gold cost around Rs3,200 per 10 grams. “Increase in rates might be a burden to buy now. But gold is more of a profitable commodity and long-term investment,” Dundoo said.

Kumar further says: “Rise in gold prices will push away customers completely during Akshaya Tritiya. They will make a token purchase irrespective of the prevailing prices. At the most, quantity of the yellow metal being bought may come down as people can buy as low as one gram of gold”. The jewellery market has a presence of both branded players and family-owned jewellers. Brands are investing heavily on advertising to lure customers with offers while family-owned businesses are relying on their loyal customers for reaping benefits during Akshaya Tritiya and upcoming wedding season.

High price can be a little dampener for Akshaya Tritiya this time, in terms of sales volume. The value of the sales is anyway going to be high

- Praveen Kumar, Secretary, Twin Cities Jewellers’ Association