With gold prices remaining weak, consumers rushed to buy the precious metal on the occasion of Akhsahya Tritiya on Monday. Gold retailers witnessed 15-40% increase in the sale compared to last year.
“Retailers witnessed strong demand from retail customers. Compared to last Akhsahya Tritiya, we have seen an increase of around 15% in the sale of gold,” said Mohit Kamboj, president, Bombay Bullion Association.
Retail consumers and investors in India prefer to make gold purchases on Ahshaya Tritiya due to the auspicious sentiment attached to it. Gold prices have fallen by around 5% since the last year’s Akshaya Tritiya day on April 24, when gold rate was R29,100 per ten grams. Since the start of this year, international gold prices have fallen 16%, and in the last two weeks by 12%.
“Fall in the prices has encouraged consumers to buy more gold,” said Mehul Choksi, chairman, Gitanjali Group. “We have seen surge of 40% in the sale of gold on this festival compared to last year.”
Shares of jewellery manufacturers such as Thangamayil Jewellers, Tribhovandas Bhimji Zaveri, Tara Jewels, Titan Industries, Shree Ganesh Jewellers jumped by 2-7.5% in initial trade on Monday but closed the in red due to widespread fall in stock market.
Online buying of gold also witnessed rise. “Till the half the day, we have already sold double of what we sold last year entire day. We are expecting the sales of gold and silver to touch three times as compared to last year,” said Sundeep Malhotra, CEO, HomeShop18.com.