High prices dampen gold buying on Akshaya Tritiya; sales down

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Gold demand on the auspicious day of 'Akshaya Tritiya' in the national capital remained subdued due to high prices of the precious metal, which today rose marginally to Rs 29,100 per 10 gm, traders said. In Gujarat, too, sales were lower by 25-30 per cent compared to last year, they said.

"Gold sales were lower than last year. The demand was less because of high prices. People are confused whether to buy now or wait for price fall, if happens in future," a GTM Jewellery Mart official said.

Gold prices have risen by almost Rs 7,000 to Rs 29,100 per 10 gm since last year's Akshaya Tritiya, when prices were ruling at Rs 22,120 per 10 gm. Echoing views, an Omsons Jewellers official said the sales were average and customers were buying gold in smaller quantity because of high rates.

Maxmimum sale was in gold coins followed by jewellery like earrings of lighter weight, he added. Delhi Jewellers and Goldsmith Association General Secretary Ramavtar Verma also said gold sales were much lower than last year.

"There was token buying of gold coins. There was not much sale in jewellery. Shop keepers refrained from keeping heavy stock on the festival day in view of pending issue of imposing of excise duty on unbranded jewellery," he said.

In Gujarat also, there was brisk buying today and sales were down by 25-30 per cent over 2011 'Akshaya Tritiya'. "We expect sales of 500 kg of gold jewellery across Gujarat on this auspicious day, which includes buying from nearly 15,000 small and big jewellers' outlets," Gujarat Jewellery Association President Zaveri Lal said.

He, however, said that sales have declined by 25-30 per cent on Tuesday as compared to last year. Jewellery traders said that buying remained brisk throughout the day, especially during the 'mahurat' period beginning afternoon and lasting till early evening. The festival is celebrated in North-West India, including Maharashtra, Rajasthan and Gujarat.

Meanwhile, jewellers in Mumbai reported brisk sales today on Akshaya Tritiya.

Gitanjali Group Chairman and Managing Director Mehul Choksi said that Tuesday's business has been brisk according to reports coming from his stores across the country.

"Going by the momentum, we expect about 35 per cent growth in sales compared to last year," he said, adding that the preference is more towards gold jewellery rather than coins or bars due to the upcoming wedding season.

Shree Ganesh Jewellery House Marketing Head Rahul Singh said, "The footfalls are very high and we expect more than 35 per cent growth in sales compared to last year. After the strike, people were waiting for Akshaya Tritiya to buy jewellery."

He said the company was expecting around Rs 10 crore business on Tuesday.

Tanishq Vice President–Retail and Marketing Sandeep Kulhalli said there has been a good pick up on the sales front since the last 3-4 days.

"The market has been buoyant and as expected there has been a surge in performance compared to last year. Gold and diamond prices have been relatively stable which has worked in our favour. Post the strike, and with the upcoming wedding season, we are confident of achieving double-digit growth," he said.

Gold prices was today ruling over Rs 29,000 per 10 grams in Mumbai.

Former Chairman of All India Gems and Jewellery Trade Federation Ashok Minawala said, "We expect 10-15 per cent growth in sales compared to last year. The sales of jewellery is more than the coins in the ratio of 60:40 per cent."