On Akshaya Tritiya day, jewelleries do roaring business. But this year, the day has passed without jewellery shops registering the usual sales figures.
This time, several customers chose to reduce the amount of gold they bought as the model code of conduct is in force.
Though the price fell by Rs. 240 per sovereign for 22-carat gold on Monday from Saturday’s price of Rs. 22,984, customers did not seem to be enthused. On Monday, one gram of 22-carat gold was priced at Rs. 2,843.
Priya, who came all the way from Chromepet to T. Nagar to buy a small piece of the yellow metal, said, “I had initially planned to buy one sovereign. But, the price didn’t fit into my budget. I spent a lot after the recent floods. So, I have enrolled for the monthly scheme that will help me buy the same amount of gold in the next few months.”
T. Nagar, the city’s popular shopping hub that usually draws a great number of buyers on Akshaya Tritiya, witnessed only moderate crowds on Monday. Those who visited the showrooms preferred to restrict their spending to below Rs. 1 lakh.
Jewellers noted that the volume of sales was 30-40 per cent lower than last year.
Jayanthilal Challani, president of the Madras Jewellers and Diamond Merchants Association, said many customers hesitated to carry cash due to strict implementation of the model code of conduct.
“We had more customers swiping credit and debit cards this time. Gold trade has already been affected due to the levy of excise duty,” he said.
Jewellers even extended working hours till 11 p.m. to encourage buyers.
N. Ananthapadmanabhan, regional chairman, All India Gems and Jewellery Trade Federation, said, “Several customers bought gold coins and articles of low weight such as earrings and rings. There has been a nearly 50 per cent drop in pre-bookings for gold during the festive season. Hike in prices has dampened the sales too.”
According to Somasundaram PR, managing director, India, World Gold Council, “the purchase trend is returning to normality with the jewellers resuming business after a month-long protest pertaining to excise duty. We believe the consumer sentiment towards gold as a savings instrument remains positive.”
(Additional reporting by Sangeetha Kandavel)
