The Hindu Business Line : Gold trade bets on Akshaya Trithi for boost in sales

Luring investments
Many jewellers have lined up an array of discount offers.
Banks have also pitched in with offers of coins.
Discounts being offered on jewellery, making charges

Mumbai April 19 Come Friday, all roads across the country will lead to the nearest jewellery shop. Akshaya Trithi, considered an auspicious occasion for investment in gold, will be celebrated this year on Friday as well as on Saturday.

Of about 800 tonnes of gold sold annually in India, about 150 tonnes, worth over Rs 13,000 crore, are bought on Akshaya Trithi alone.

"Gold sales pick up in the South and the North at least two days ahead of the occasion. (In the other regions, gold is usually bought only on the day of Akshaya Trithi). We clock about 10-15 per cent of our annual sales and 3-4 per cent of our diamond sales on this auspicious day," said Mr Mehul Choksi, Chairman, Gitanjali Group.

Concern over high inflation, coupled with the dollar losing its sheen against most global currencies have pushed up gold prices across the globe.

In India, over the last 12 months, pure gold (99.9 purity) has appreciated from Rs 7,940 per 10 grams to Rs 9,420, a rise of 18.65 per cent. Over the last month, pure gold moved up by Rs 135 per 10 gm to Rs 9,420 per 10 gm.

Discount offers

Many jewellers have lined up an array of discount offers for Akshaya Trithi."People prefer buying pure gold on this occasion. However, we are offering 5-6 per cent discount on gold jewellery and 25 per cent discount on making charges," said Mr Choksi.

Tribhovandas Bimji Zaveri (TBZ), a Mumbai jeweller, has geared up for the day. "Apart from discounts, we have made special arrangements like increasing the number of sales personnel and erecting pandals outside branches. We will be open from 9 a.m. to 11 p.m. on Friday and Saturday," said Mr Fazal Abbas, head of customer care at TBZ.

Banks offer coins

Not to miss out on the opportunity, banks have also pitched in with offers of gold coins. "We sold around 400 kg during the Akshaya Trithi season last year and are expecting a 50 per cent jump this year. We want to promote investment in gold as it has given an return of interest of 25 per cent per year during the last 4-5 years," said Mr Kanwar Vivek, Joint General Manager, ICICI Bank Ltd.

ICICI Bank's 5 gm gold coins with Goddess Lakshmi embossed on them are priced at Rs 5,355.35 and the 8 gm coin at Rs 8,488.20. Twenty gm gold bars cost Rs 21,098.08; 50 gm bars Rs 52,403.32 and one kg bars Rs 9,84,646.27.

Banks, which began gold retailing in 2003, offer coins of 2 to 500 gm and bars of one kg with ASSAY certification.

Banks charge a premium over the market rate to cover additional expenses incurred by way of import and storage.

Union Bank of India, which earlier served wholesalers only, is into retailing this year. While Kotak Mahindra Bank is pushing its Eternity Gold Bars, HDFC Bank is offering a 4.5-5 per cent discount on 5 gm and 10 gm coins, as well as on 50 gm bars under the brand name of `Mudra'.

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