Jewellers in Hyderabad eyeing to strike gold on Akshaya Tritiya

HYDERABAD: City jewellers are hoping to reap huge profits this Akshaya Tritiya, thanks to the prevailing 'moderate price' of the yellow metal. The current rate that was hovering around Rs 27,500 (per 10 grams) on Saturday, is expected to result in a 30 to 50 per cent jump in business across Hyderabad on May 13, analysts indicate.
"Since April, we have been recording 80 to 100 footfalls per day.On Akshaya Tritiya, the count will be five times more and we expect around 500 people to throng our showroom in Somajiguda. I also see us doing 30 per cent more business this time than last year," said Rakesh Kumar of Malabar Gold & Diamonds.
The country was gripped in 'yellow fever' last month when the price of gold went into a tailspin, touching a 21-month low of Rs 26,440. While the prices have marginally recovered thereafter, it is still much lower than the corresponding period last year. Gold prices around Akshaya Tritiya last year was roughly Rs 32,000, industry sources said.
"Over the last two days, we have observed people booking gold in advance so that they can purchase on May 13. While we made Rs 10 crore on Akshaya Tritiya last year, this year we expect the figure to touch Rs 20 crore," said an official from Tanishq.
General manager of the state-run MMTC, Hyderabad showroom, Srinivas Rao too seemed upbeat about the festival, saying he was hoping to see his business take a leap of at least Rs 1 crore. He added that they are organizing a five-day exhibition at their showroom from May 10 to 15. "We expect a huge rush during the festival and a day before that. We have extended the exhibition-cum-sale by two days so that people who miss buying on Akshaya Tritiya can buy later," Rao said.
Apart from gold trinkets and coins, traders said the market is also flooded with demands for heavy jewellery this year. "Consumers had held back on buying gold for a long time. Predictably, the drop in prices in April has triggered massive sales. I expect our sales to shoot up by 50 per cent," Suvanker Sen, executive director of Kolkata-based Senco Gold, pointed out.
Apart from cashing in on the 'downfall' of gold, city jewellers are also doling out fat discounts and offers to draw more customers. For instance, Mangatrai Jewellers has decided to waive the making charge on gold jewellery for every buyer that sets foot in their showrooms at Punjagutta and Jubilee Hills, of which the latter would be inaugurated in the auspicious occasion. "I am sure we will be offering the lowest rate in the state on the festival day," said Darpan Gupta of Mangatrai Jewellers.
Malabar Gold & Diamonds has also coined an offer wherein customers who make advance bookings prior to May 12 will be given free silver coins if they collect their orders on May 13. "If a person has booked an order for 50 grams gold jewellery before May 12, he/she will get a 25-grams silver coin on May 13," an official said. The World Gold Council, in partnership with India Post and Reliance Money, is also offering consumers a 7 per cent discount on gold coins purchased from India Post offices.
But while most traders are positive about bumper sales this year, some aren't too sure of earning hefty profits. "There are not many weddings this month. Also Hyderbadis are usually on a summer vacation during this time. The gold prices have been wavering and given such a scenario, I do not think there would be a drastic impact on the sales during Akshaya Tritiya. People will certainly buy gold but they may go for moderate quantities such as five grams or 10 at the most," said an official of Mussaddilal & Sons Jewellers.