Akshaya Tritiya 2023: Jewellers expect 20 per cent dip in demand

The recent surge in gold prices which is hovering around Rs 60000 per 10 grams is likely to dampen consumer demand this Akshaya Tritiya with jewellers expecting a 20 per cent decline in sales in volume termsWith gold prices crossing Rs 60000 per 10 grams 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 told PTIDuring 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 saidCurrently the gold price is ruling at Rs 60280 per 10 grams level in the domestic marketEchoing 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 TritiyaWe 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 addedHowever if there is a sudden dip in gold prices it will boost sales he addedCommtrendz Risk Management Services CEO Gnanasekar Thiagarajan said the gold prices which are currently ruling at Rs 60280 per 10 grams level though bullish are likely to remain stable for sometimeAt present there are no major triggers to make gold prices volatile like the US economic data Even the current geopolitical situation like the RussiaUkraine war and oil prices among others have not affected the gold prices recently he saidIt 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 addedWorld Gold Council Regional CEO India Somasundaram PR said that gold purchases are an inseparable part of Akshaya Tritiya celebrations for millions of IndiansIt is considered a sign of prosperity and it signals the start of seasonal buyingThough a major gold buying festival this year Akshaya Tritiya faces lifetime 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 saidRecent tax changes have put gold funds at a tax disadvantage which could offer an unintended advantage to digital gold buying However given the strong cultural connect any shortterm softening of price could mean a Akshaya Tritiya surprise for jewellery demand he addedAlso Read Akshaya Tritiya 2023 Jewellers expect a strong season this year amid high gold pricesKama Jewelry MD Colin Shah said after a dullperformance during the two years of pandemic the sheen is back to the gold industryGold 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 addedAntara Jewellery MD Ankit Gala said due to an increase in the price of gold there may be a decrease in the volume of gold purchases this time as compared to the previous yearHowever we anticipate good sales as many believe that buying gold on this day brings luck and prosperity Buyers may opt for gold coins bars or digital gold rather than jewellery pieces as they may see gold as a store of value or a hedge against inflation We can also see a shift in their buying choices for things like diamonds and gemstones which are considered affordable options for gold he addedHowever 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 weekendWe are bullish about this years Akshaya Tritiya Gold prices are expected to stabilise and stay within the Rs 60000 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 addedThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever