The Hindu : Tamil Nadu / Chennai News : Gold rush tinged with slight lull

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Wednesday, Apr 29, 2009
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Tamil Nadu

Tamil Nadu - Chennai

Gold rush tinged with slight lull

Meera Srinivasan

— Photo: K.V. SRINIVASAN

glittering purchase: Customers at a jewellery showroom inT.Nagar in Chennai on Monday, ‘Akshaya Trithiya’ day.

CHENNAI: Sale of gold on ‘Akshaya Trithiya’ day, on Monday, seemed to lack a bit its usual lustre this year, although many jewellery store owners termed it “satisfactory”. Many jewellers said that the sale picked up considerably in the latter half of the day, prompting them to remain open for longer than they originally intended to.

The chain of jewellery stores around Panagal Park were buzzing with activity since morning, but the crowd inside hardly big, compared to last year’s. The scene was largely uniform at jewellery stores across the city. Showroom owners attributed it to several factors, including the economic downturn and the increase in price of the yellow metal.

According to L.K.S. Syed Ahmed, chief advisor to the Tamil Nadu Jewellers’ Federation the awareness of ‘Akshaya Trithiya’ day has increased significantly. “Earlier only a few stores would offer special discounts and offers on this particular day, but now everyone knows about it. Besides jewellery stores, banks are also giving some offers. So for those in the suburbs, good deals are available closer to home now and they need not necessarily come to T.Nagar,” he said.

Another reason Mr. Ahmed cited for the slight lull was the increase in the price of gold two days ago. “The price of gold today [Monday] is Rs.1,378 per gram. It was Rs.1,342 per gram on April 22. The demand from India for gold in the world market went up suddenly in a short period of two to three days. This also contributed to the increase in rates. But the sale of gold and platinum, too, were satisfactory,” he added.

In the context of the recession and the fact that several other sectors were hit badly, the crowd in T.Nagar was promising, according to K. Shivram, Vice-President of the World Gold Council.

Srilakshmi Narayanan, a customer waiting at a store in T.Nagar said she always made it a point to buy gold on ‘Akshaya Trithiya’ day. “I have been following this practice for nearly a decade now. It is a good investment,” she said.

From the World Gold Council’s point of view, April has been an excellent month for the trade. “After a very depressing season from Janunary to March this year, the sale in April alone is nearly 70 per cent more than what was recorded in those three months,” Mr.Shivram added.

Besides new stores that have sprung up in the suburbs, several big players are now expanding to other areas in the city. “Anna Nagar is emerging as another belt now. In times of recession, these are indicators point to the faith customers continue to have in gold.”

Chairman and managing of Lalitha Jewellery M. Kiran Kumar also felt that the Monday’s sale was very encouraging. “We are open since 6 in the morning and plan to be open till 11 p.m.,” he said.

With other sectors also cashing in on the spirit of ‘Akshaya Trithiya’, customers had a range of gold-buying deals to choose from.

Keerthi Naveen, for instance, bought a gold coin and a small locket for her two children.

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