Akshaya Tritiya fails to set gold sales on fire

HYDERABAD/ Visakhapatnam: Akshaya Tritiya proved to be a day of mixed fortunes for jewellers in the two states of Andhra Pradesh and Telangana. While a majority of Hyderabad jewellers reported subdued sales despite a slew of discount offers and freebies to dazzle buyers, their counterparts in Vizag reported slightly better business.
The not so great sales were reported despite gold prices being nearly Rs 250 per gram lower as compared to last year’s Akshaya Tritiya.Last year, during the festival the price of one gram gold (22 karat) was hovering around Rs 2,750 and this year it was in the range of Rs 2,537 a gm. Most jewellery stores in the two cities reported slack business during the daytime with sales picking up only in the evening, which jewelers attributed to the scorching heat.
“Gold sales have not been up to the mark this Akshaya Tritiya primarily because the money market is tight,” said Secunderabad Gold, Silver Jewellery and Diamond Merchants Association president B Suryaprakash Rao.
Darpan Gupta of Mangatrai Jewellers, Hyderabad, confirmed that this year Akshaya Tritiya sales were lower compared to last year largely due to subdued demand from rural consumers in the wake of unseasonal rains that destroyed crops right in the middle of harvest season.
“The low gold prices also do not seem to have inspired confidence among people as many no longer see gold as an investment tool. Also, when prices fall continuously, people adopt a wait and watch strategy and put off purchases in anticipation of prices falling further,” Gupta said.
However, on the other hand in Vizag, Mouli Krishna, propreitor of Shyam Zaveri Jewellers, said they notched up 30% higher sales this year. “The fact that gold prices were stable during the last four to five months encouraged people to purchase gold. After real estate, jewellery is being perceived as a safe investment option by people in the Port City.”
Meanwhile, J Raghunath, general manager of Vaibhav Jewellers in Vizag, said they saw 15% higher footfalls as compared to last year. “During Akshaya Tritiya last year the city was going through a tumultuous time due to the impending bifurcation as well as general elections. This time it is more peaceful as a result of which the sentiment is good and people are in a mood to buy,” he explained.
According to Mavuri Venkata Raman of Vizag’s CMR Jewellery, the upcoming marriage season too prompted many buyers in the `City of Destiny’ to take advantage of the lower prices and attractive offers to purchase gold.
Highlighting the trend in Hyderabad, Malabar Gold and Diamonds showroom head Jishad NK said people were mainly going for token purchases ranging from 1 to 5 gm and the few bulk purchases taking place were on account of the upcoming wedding season.
According to Kirtilals GM (store operations) G Madhusudhan, Akshaya Tritiya business has become a moderate affair over the past four years due to fluctuating gold prices and changing investment habits of middle-class consumers, who constitute the biggest gold-buyer base in the country. “Earlier people used to purchase gold only on auspicious occasions such as Dhanteras, Varalaxami Vratam and Akshaya Tritiya resulting in business peaking on those days, but these days people investing in gold tend to make small purchases every month.”