Pricey gold loses sheen this Akshaya Tritiya
Sellers in Tamil Nadu and neighbouring states said the sales were lesser than the previous years due to the increase in price.
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CHENNAI: Akshaya Tritiya, considered auspicious to purchase gold, witnessed a reduction in sale owing to the astronomical price of gold. Though the footfall was normal, customers chose to go for lighter ornaments and coins.
Sellers in Tamil Nadu and neighbouring states said the sales were lesser than the previous years due to the increase in price.
“Sales were 40% less as compared to last year and the volume of business was less. But the footfall was high, unlike the past few months, which is a positive sign. If US President Donald Trump corrects the tariffs, gold rate might reduce or vice versa,” said B Sabarinath, president of the Tamil Nadu Jewellers Federation and president of the Coimbatore Jewellers Association.
“Business was very dull in the morning but picked up in the evening. Sales remained the same as last year. Due to the high price, many customers restricted their purchases to a limited amount. The sales were more in the form of coins. Last year, sales went until 12 am, but this year it stretched a little over 8 pm,” said Ashok Rathod, secretary of the Jewellers Association of Bengaluru.
Last Akshaya Tritiya (May 10), the rate of gold per sovereign was Rs 53,280 in Chennai. On Wednesday, the rate per sovereign was Rs 71,840, which is an increase of 35% in a year.
“Sales mostly remained the same as last year, while some stores recorded a 10% increase. Gold in the form of jewellery saw 60% sales and coins 40% in the city. The maximum number of customers were in the age group of 30 to 50,” said Gold Guru Shanthakumar, secretary of the Jewellers and Diamond Traders of Madras.
“Gold rate has increased post-Covid and has given good returns to consumers. Gold is a good option as jewellery but not as investment,” opined V Gopalakrishnan, an economic consultant based in Chennai. Jewellers in Kerala recorded dull business. “Consumers may be anticipating the rate to come down and they also feel that the rate has escalated several folds,” said a jeweller in Kerala, requesting anonymity.
