Weak gold may lift sales by up to 25pc this Akshaya Tritiya
Mumbai: The continued weakness in gold prices is likely to push up jewellery sales by up to 25 per cent this Akshaya Tritiya, considered auspicious to buy gold, according to retailers.
“The prices have been stable for quite some time, which we expect will be a boost for jewellery sales during this Akshaya Tritiya,” Manubhai Jewellers Director Samir Sagar told PTI.
About 2-3 weeks ago, he said the sales were in slow lane due to the financial year ending.
Akshaya Tritiya, which is considered an auspicious day to buy gold, falls on April 21.
“However, the momentum has picked up due to public holidays. Looking at this growth momentum, we are expecting 20-25 per cent growth during this Akshaya Tritiya compared with last year. We expect most of our sales in categories like chains, bangles and other smaller items,” Sagar said.
Echoing a similar view, P N Gadgil Jewellers’ Chairman and Managing Director Saurabh Gadgil said Akshaya Tritiya looks exciting as prices continue to remain steady, hovering around Rs 27,000, mainly supported by global fundamentals.
“We are expecting a 20 per cent growth in sales, mainly in small-ticket size items like coins and rings, among others, and bridal jewellery as the marriage season is round the corner,” he reasoned.
He said most of the bridal jewellery, for which the company has been getting bookings for the last 10-15 days, would be picked up on Akshaya Tritiya.
“The bridal jewellery bookings this year are 20-25 per cent more than last year,” he added.
“Over the last few months gold price has not been volatile, leading up to a spike towards the occasion of Akshaya Tritiya. We are definitely expecting a good growth over the last year’s sales,” Tanishq Senior Vice President – Retail and Marketing (Jewellery) – Sandeep Kulhalli said.
The gold price in the domestic industry is now hovering at Rs 25,600 level.
Going forward, gold is likely to rule at Rs 25,500-26,000 level in the next three months, mainly on view that the US dollar would strengthen further and the Federal Reserve is likely to hike rates, according to Angel Broking Associate Director – Commodities and Currencies – Naveen Mathur.
All India Gems and Jewellery Trade Federation (GJF) Chairman Manish Jain attributed the positive sentiment in the market to the steady gold prices.
Bachhraj Bamalwa of Nemichand Bamalwa & Sons in Kolkata said: “We are expecting 10-15 per cent growth in sales during this Akshaya Tritiya compared with last year as there is a positive consumer sentiment towards gold all around due to stable gold prices and positive government policies.”