Gold & Silver

Gold sales hit as locked down customers give Akshaya Tritiya a miss

Suresh P Iyengar Mumbai | Updated on April 27, 2020

Given the country-wide Covid-induced lockdown, the gold jewellery industry witnessed a lukewarm response for the online gold jewellery sale offer announced ahead of Akshaya Tritiya, an occasion considered auspicious for buying gold.

High gold prices, logistical constraints on delivery, uncertainties surrounding wedding schedules, income anxieties, job losses and lockdown in various degrees made it an unusual period of restricted gold demand during the Akshaya Tritiya on Sunday.

Suvankar Sen, Executive Director, Senco Gold and Diamonds, said the company’s sales during this Akshaya Tritiya was down about 85 per cent compared to that of last year as all offline stores were closed due to the lockdown.

Wooed by the price protection guarantee, he said, customers now prefer buying bars and coins, besides making token advance through Senco’s e-commerce portal.

Somasundaram PR, Managing Director, India, World Gold Council, said the digital transactions of the industry, if sustained, will be a good development for transparency and for monetising gold, but this can happen only with an acceptable regulatory framework to protect consumer interest.

Tanya Rastogi, Director, Lala Jugal Kishore Jewellers, said customer enquiries on gold prices increased on the back of analysts’ predictions that the price of the yellow metal would touch ₹70,000 per 10 grams sooner than later.

As the extension of the lockdown looks imminent, jewellery purchases for weddings also picked up slightly as many events that were postponed earlier are now being rearranged as low key affairs, she said.

Ishu Datwani, Founder, Anmol Jewellers, said the response to Akshaya Tritiya was lukewarm, as expected, during the current uncertain time and cannot be compared with the previous year.

Vaibhav Saraf, Director, Aisshpra Gems and Jewels, said customers had made token purchases and have also shown keen interest in gold EMIs.

Gold coins of 2 grams, 5 grams and 10 grams were in demand and delivery or pick-up from stores will happen once the lockdown is lifted, he said.

Published on April 27, 2020

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