The World Gold Council is expecting sales of the yellow metal to jump 20-25 per cent on the occasion of Akshaya Tritiya, which falls on May 8 this year. Gold sales touched 55 tonnes during this day last year, according to WGC data.
According to industry estimates, 5 per cent of India's total gold consumption of about 750 tonnes is sold on this auspicious day alone. This year, too, customer's attraction towards gold is likely to continue despite high prices. However, WGC is a bit apprehensive.
Yellow glitter
- Gold sales touched 55 tonnes on Akshaya Tritiya last year
- According to industry estimates, 5 per cent of India's total gold consumption of about 750 tonnes is sold on this auspicious day alone
"Any major volatility in price may change the consumers' sentiment and therefore, sales volume may decline," a WGC official said.
Jayant Manglik, head-commodities, Religare Enterprises, said, "Akshaya Tritiya is considered very lucky because Akshaya in Sanskrit means 'that which never diminishes'. It is believed that whatever is done on this day shall continue to increase for the rest of the year. In general, it reflects positively on the person's future. Therefore, consumers want to own gold on this occasion."
"This year Akshaya Tritiya is likely to become much bigger than that of past years as prices very attractive," said Ashok Minawala, chairman, All India Gems & Jewellery Trade Federation.
Gold prices have fallen phenomenally since its peak on March 17 this year at $1011.25 an oz to $874 an oz on Tuesday.
Banks and retail players in gold jewellery segment have come out with lucrative offers trying to cash in on the occasion.
Senior executives in ICICI Bank sell gold coins with a 5 per cent discount to its favoured customers, while HDFC Bank has introduced specially crafted gold coins. Both ICICI and HDFC are expecting sales to grow by at least 50 per cent to about 2 tonnes this year.
Customers are considering to buy 100gm or 1kg gold bars from the commodity exchanges through their broker. These bars are approved by the London Bullion Merchants' Association for purity and have therefore quickly become the chosen mode of investment in gold.
Gold prices up by Rs 200
Gold prices have gone up by Rs 200 to Rs 11,600 per 10 gram on the bullion market here on Tuesday on brisk buying by stockists and general investors. Pure gold rose by Rs 200 to Rs 660 per 10 gram.
Marketmen said buying activity picked up as some investors diverted their funds from melting stock markets to bullion and helped the precious metal to move up.
