Gujarat: Akshaya Tritiya revives biz for jewellers

City jewellers were on their toes to fulfill the gold demand of the city on the auspicious day of Akshaya Tritiya. The jewellers welcomed the busy day as the business were facing the slow down after the declaration of election dates. 

Majority of sales was for upcoming wedding season in November and December. According to estimates over 100 kg of gold and jewellery is sold in the city alone, while the number crosses 200 kg across the state. Lack of volatility in prices also improved consumer confidence, they say.

"It was beyond our expectations. The festive occasion brought back the footfalls. Buyers made fresh purchases as well as took deliveries of orders placed earlier," said Shanitibhai Patel, president of Gems and Jewelry Trade Promotion Council.

Jewelers told DNA that Model Code of Conduct (MCC) that came into place because of ongoing elections for Lok Sabha has been a major dampener for the business for about two months now. Under such circumstances Akshaya Tritiya was a welcome change. "We had advanced booking. Marriage season also pushed up sales. Most of the sales pertained to marriages, while the sale of bullion for investment was limited," said Jigar Soni, vice president of Jewellers Association Ahmedabad.

He, however, said that despite the surge in business, the sales on Tuesday was lower than previous year. But he attributes to the mushrooming of jewellers across the country. So while jewellers may feel that individually their business is lower, their cumulative business has improved than previous year.

Jewellers in old city also said that business has improved because of Akshaya Tritiya. This area of the city is more dependent of rural customers. Consecutive droughts had affected rural demand. "Buyers poured in because of it's an auspicious day. Every jeweller had good sales," said Chinubhai Shah, president of Shree Choksi Mahajan, city's oldest association of jewellers.

Price of 24 carat gold (excluding GST) stood at Rs 32,550 per 10 gram, while that of 22 carat gold stood at Rs 31,070 per 10 gram. Soni sees upside potential in prices because of likelihood of confrontation between Iran and USA. With geopolitical uncertainty likely to increase, causing stress in financial instruments, gold would prove not only as a safe but also as a lucrative investment avenue.

Rate Of The Day

• Price of 24 carat gold (excluding GST) stood at Rs 32,550 per 10 gram and price of 22 carat gold stood at Rs 31,070 per 10 gram
• Experts see upside potential in prices because of likelihood of confrontation between Iran and USA
• With geopolitical uncertainty likely to increase, gold proves to be safe& lucrative investment avenue.