The surge in buying is attributed to decline in gold prices, appreciation of the Rupee and relaxation in movement of cash following the conclusion of five phases of polling for the Lok Sabha elections
On Tuesday, the occasion of Akshaya Tritiya this year, sale of gold jewellery rose by over 15 per cent as compared to last year. The surge in buying is attributed to decline in gold prices, appreciation of the Rupee and relaxation in movement of cash following the conclusion of five phases of polling for the Lok Sabha elections. The demand has been especially high in Mumbai, where there was a 20 per cent rise, say jewellers.
Anantha Padmanabhan, chairman of the All India Gem & Jewellery Domestic Council, attributed higher sales to overall positive sentiments. "Buyers are purchasing lightweight jewellery ranging between Rs 30,000 and Rs 50,000. When the Model Code of Conduct was in place, there were curbs on movement of cash, and so buying was low. But now, with five phases having polled, customers can purchase on Akshaya Tritiya ," he said, adding that the Rupee's appreciation and falling gold prices helped.
Surendra Mehta, national secretary, India Bullion and Jewellers Association, pegged the figure at 20 per cent for Mumbai. "Gold prices have come down to Rs 32,500 per 10 grams as compared to Rs 35,000 per 10 grams in February this year. This price is attractive. Buyers also expect gold as a safe haven following a volatile stock market and the international trade war," he viewed.
Sales would be much higher down South. While Chennai is expected to have seen a 20 per cent rise in sales over last year, Coimbatore Jewellery Manufacturers' Association president Muthu Venkatram observed that sales would be about 50 per cent higher in Coimbatore alone.
RECOVERING ITS LUSTRE
- Model Code of Conduct had put curbs on movement of cash, but polling has concluded for five phases
- But falling prices, appreciation of the Rupee and a volatile stock market have helped gold along
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