Akshaya Tritiya: Sparkling sales at jewellery shops
Drop in gold price, high inflation, Ukraine crisis further boosting bullion business; jewellers witness 40% rise in footfalls on auspicious day
image for illustrative purpose
Kolkata: Jewellers of Kolkata are happy on the auspicious day of Akshaya Tritiya to witness a footfall jump of 30-40 per cent compared to normal days as soaring inflation, the Ukraine crisis, besides religious sentiments, influenced people to purchase gold and bullion as assets.
Shops this year ordered calendars and sweetmeats for guests which were absent in the last two years owing to the Covid-19 pandemic and lockdowns.
"We witnessed tremendous response for gold jewellery as well as bullion in this Akshaya Tritiya. Besides religious sentiments, people are cautious in spending on discretionary and luxury items and tourism, realising benefits of gold," India Bullion and Jewellers Association West Bengal president Ashok Begani told PTI.
"Jewellers across the country have opened their stores early across the country and there is a strong momentum in footfalls since morning. There has been positive sentiment in the market for the last 10-15 days and we expect it to continue on the day of Akshaya Tritiya. We expect to do 25-30 tonne business on this auspicious day," said Shyam Mehra, vice-chairman, All India Gem and Jewellery Domestic Council.
Asked if the high prices will become a hurdle on sales on this Akshaya Tritiya, Mehra said, "gold prices have come down to around Rs50,500 per 10 gram from Rs55,000-58,000 per 10 gram, giving boost to consumer sentiment."
Moreover, he said, a section of customers said that the Ukraine-Russia war is a reminder for them that if a family is displaced, assets like gold can be taken along and not real estate properties which have to be left behind.
"Customers are going for gold jewellery and bullion as a hedge against high inflation. The volatility in the stock market also made it conducive to the attraction for the yellow metal. As per feedback, people have doubled their investments in gold jewellery and bullion from 25 per cent to 50 per cent of their investable surplus funds," he said.
Swarna Shilpa Bachao Committee Secretary Bablu Dey said there is a steady improvement in customer flow since morning.
