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High prices dampen gold buying on Akshaya Tritiya; sales down

Source : PTI
Last Updated: Tue, Apr 24, 2012 17:03 hrs
Riama Sen inaugurates 'Festival Of Gold' in New Delhi

Gold demand on the auspicious day of 'Akshaya Tritiya' in Delhi remained subdued due to the high price - Rs 29,100 per 10 gm - at which the precious metal was quoting.

In Gujarat, too, sales were lower by 25-30 per cent compared to last year, traders 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 these views, an Omsons Jewellers, Delhi official said the sales were average and customers were buying gold in smaller quantity because of high rates.

Maximum 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 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 as compared to last year.

Jewellery traders said that buying remained brisk throughout the day, especially during the 'muhurat' period beginning afternoon and lasting till early evening.

The festival is celebrated in North-West India, including Maharashtra, Rajasthan and Gujarat.




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