Gold buyers back at stores

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Gold sales witnessed a mixed trend during Akshay Tritiya, but the Indian appetite for gold seems to be recovering.
Consumers seem to be developing a preference for purchasing gold from larger chains and even banks, perhaps with the expectation that purity will not be an issue here.
Some of the larger jewellery chains have recorded a sharp jump in gold sales this year compared to the last year. Industry sources say that 20-25 per cent of the total gold sales in India happen during the month of Akshay Tritiya.
“We have seen a sharp jump in our volumes this Akshay Tritiya,” says Mr Rajesh Mehta , chairman of Rajesh Exports — a leading jewellery manufacturer.
“This is because our stores have done away with costs such as making charges and wastage charges,” he adds. Mr Kiran Dixit of TBZ (Tribuvandas Bhimji Zaveri) said they saw good momentum in sales in their 14 outlets across the country.
Most of the footfalls happened between 6-9 pm as being a Sunday people were more relaxed. We were hoping for an increase of 15-20 per cent of our year’s sale today, he said. Other non-traditional gold vendors such as banks have also done more business.
“We had sold 440 kg of gold in the Akshay Tritiya month last year, but this year, we have already sold 650 kg of gold in May so far,” said the spokesperson of a leading private sector bank.
Most of the large banks in India sell hallmarked gold coins and bars. Unlike jewelry, this is purely an investment. However, many of the smaller chains and stores have reported a drop in volumes compared to the last year.
Several stores in Hyderabad and Bengaluru have reported a drop of 30-40 per cent in sales compared to the last year. In many cases, customers have purchased gold, but in lower volumes compared to the last year.
Overall, India’s gold consumption, which had dropped during 2008 and 2009 is expected to recover somewhat this year.
Mr Bhargav Vaishya a gold analyst said that this being the Adkik Mas month people do not buy gold or do anything new during this period. So Akshya Tritiya coming after this was an auspicious time to buy gold. So the impact of high prices was neutralized.