Akshaya Tritiya drives gold sales

April 22, 2015 12:00 am | Updated 05:45 am IST - MYSURU:

Customers at a jewellery store on Tuesday.— PHOTO: M.A. SRIRAM

Customers at a jewellery store on Tuesday.— PHOTO: M.A. SRIRAM

Footfall in jewellery showrooms in the city witnessed a surge on Akshaya Tritiya, which fell on Tuesday.

The relatively low rate of gold on Tuesday (Rs. 2,520 a gram) compared to Rs. 2,830 a gram during the corresponding season last year and almost Rs. 2,900 a gram the year before – helped jewellers make brisk sales of the precious commodity.

A majority of customers had placed their orders almost a month earlier but preferred to pick it up on Tuesday, as there is a belief that gold purchased on Akshaya Tritiya “multiplies good fortune”.

“We have sold over 3.5 kg of gold as of 5.30 p.m. today and expect to sell more gold by late in the night,” said Raghavendra of Jos Alukkas. Since Akshaya Tritiya also coincides with the wedding season, made-to-order jewels for which orders are given months in advance are picked up on this day, he added.

K.N. Gupta of Sri Thirumalesha Jewellry Hall, said the customer flow was steady throughout the day but gained further traction by late in the evening. A majority of the customers opted for ready-made jewellery and came from all categories of economic classes, a view endorsed by Jaipal H. Patil of A. Shankar Chetty and Sons which is in the jewellery business in Mysuru since 1925. “Most of the nearly 100 jewellers in the city will witness a surge in customers,” said Mr. Patil, who expected a 15 per cent to 20 per cent higher footfall compared to last year. A majority of the gold showrooms are concentrated on Ashoka Road, B.N. Road and Devaraja Urs Road.

Last year’s sales were slightly muted as the election code of conduct was in place, triggering fear among bulk buyers that their transactions could attract the attention of enforcement authorities.

Gold exchange funds

B.G. Nagaraj, an investment consultant said Gold Exchange Traded Funds (ETF) may have lost its sheen as an investment option in terms of the returns offered by it. But the sale of the yellow metal is driven by the sentimental value towards it in Indian culture and will continue to hold sway among customers, he said.

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