Simhastha, soaring prices hit gold sales on Akshaya Tritiya
Akshaya Tritiya, considered an auspicious day to buy gold, was lackluster this time as jewellers saw negative marginal growth compared to last year as the occasion coincided with the ongoing Simhastha Kumbh in Ujjain and the second Shahi Snan (Royal Bath) on Monday.indore Updated: May 09, 2016 21:02 IST
Akshaya Tritiya, considered an auspicious day to buy gold, was lackluster this time as jewellers saw negative marginal growth compared to last year as the occasion coincided with the ongoing Simhastha Kumbh in Ujjain and the second Shahi Snan (Royal Bath) on Monday.
Around 30 lakh pilgrims took a holy dip in Kshipra River on Monday, with a significant number of people belonging to Indore and nearby cities, which hit jewellery business at Sarafa market in the city.
“The sales failed to pick up and there was hardly any rush. I think many people from the city went to Ujjain for Simhastha and then unexpected showers in the afternoon might have kept people indoors,” Indore Sona Chandi Jawaharat Vyapari Sangh president Hukumchand Soni said.
Experts said high gold prices could also have impacted jewellery sales.
Gold prices have shot up to Rs 30,000 per 10 gram, up more than 10% from Rs 27,000 per 10 gram in the first week of February.
“All in all, the response was very poor due to different factors but Simhastha Kumbh had a major impact,” Soni said.
The jewellers had just about managed to build up the inventory for Akshaya Tritiya as the artisans -- who had gone back to their native places during the strike -- have started returning back. Jewellers across the nation had gone on an indefinite strike after the Centre imposed 1% excise duty on gold jewellery.
The gems and jewellery industry in Indore is estimated to have incurred a loss of over Rs 1,400 crore during the 42-day strike that began on March 2.
The jewellers had come out with a variety of schemes to boost sales on Monday and had also offered up to 50% discount on jewellery making charges of gold and diamond ornaments.