Gold price dip sparks hope of Akshaya Tritiya sales among jewellers

Hyderabad: With gold prices softening to around $3,300/Oz levels in international spot markets and around Rs 96,000-97,000/10 gm levels (24K excluding GST) in the local markets from their peaks of $3,500 and Rs 1 lakh after US President Donald Trump softened his stance on tariffs and backtracked on sacking Federal Reserve Chair Jerome Powell, jewellers have their fingers crossed for customer footfalls this Akshaya Tritiya.
Most jewellers, both chains and standalone stores, are already going out of their way to sweeten the deal for customers with hefty discounts on making charges, with some even waiving off making charges altogether on gold jewellery.

"Jewellers have prepared themselves with a lot of freebies and discounts to offer to customers as gold prices shot up 32% to Rs 96,300 this Akshaya Tritiya in comparison to last year when prices were only around Rs 73,000," said India Bullion and Jewellers Association (IBJA) national secretary Surendra Mehta.
"The last 3-4 days have been good and customers have accepted current gold rate. We have prepared for and are targeting good double digit growth hoping that customer sentiment for Akshaya Tritiya remains upbeat as it usually is," said Ajoy Chawla, CEO of jewellery division, Titan Company Ltd.
Avinash Gupta, vice-chairman, All India Gem & Jewellery Domestic Council, said the industry expects customers to shop on the auspicious day. "We hope to get at least last year's volumes," he said.
However, Mehta said he expects demand to be sluggish as compared to last year's Akshaya Tritiya. "In terms of value, the industry is expected to achieve at least 20% higher than last year, but volume-wise demand is expected to be lower by 10%. Customers have also been booking orders in advance to ensure that they are not charged a higher price if gold prices go up on Akshaya Tritiya," he said.
Mehta pointed out that low carat and lightweight jewellery are expected to be in demand this Akshaya Tritiya, given the skyrocketing prices of the precious metal.
Agreeing, Darshan Gupta, partner, Mangatrai Jewellers, said the demand for 14K and 18K jewellery has gone up, with lightweight designs being preferred, especially by youngsters and the IT crowd.
According to Mehta of IBJA, sales are likely to be more aggressive in South India than in other parts of India, with sales of gold coins and bars expected to be marginally higher by 12-15% in comparison to jewellery sales, as investment demand for gold has shot up with the skyrocketing prices.