Industry

‘Lockdowns to dent gold sales on Akshaya Tritiya’

Gold buying on Akshaya Tritiya this year may be muted as stores remain closed following lockdowns in 19-20 cities, according to dealers.

However, demand for digital gold and Gold ETFs is likely to witness a rise, they say.

“Consumer demand, as compared with the previous years, has taken a hit as stores are either closed or are operating only for few hours because of the lockdowns,” said Suvankar Sen, CEO, Senco Gold and Diamonds. “We have started seeing online sales to an extent because of Akshay Tritya and the upcoming wedding season,” he added.

He also said gold prices had increased by almost 5% in the last one month as it had emerged as an instrument of safe investment as also a hedge against inflation.

“The second wave of CCOVID-19 situation is not in favour of the jewellery industry,” said Prithviraj Kothari, MD, RiddiSiddhi Bullions.

“The demand will be less as marriages are also not happening. However, demand will be more for Gold ETF, digital gold and other products that can be bought online,” he said.

Akshaya Tritiya being an auspicious occasion many people buy in advance and get delivery on this auspicious date. So, there will be more online deliveries than buying something new on the day as prices have risen to about ₹49,000 per 10 gram,” he added.

“During the pandemic another method of saving in gold has gained popularity in the form of Augmont Digi Gold. In 2020, we had sold around 10 kg of Digi Gold on last year and this year, we are expecting a similar sales volume,” said Ketan Kothari, director, Augmont Enterprises.

“This year, owing to the second wave of COVID-19 and investor sentiment being driven towards assets with long-term returns, customers are turning to digital options such as digital gold,” said Ashraf Rizvi, founder & CEO, Digital Swiss Gold .

“Put simply, physical gold bought digitally and easily through a mobile app is digital gold. In the present environment, when some States are under a lockdown digital gold is the safest option,” he added.


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Printable version | Jun 25, 2021 3:27:44 PM | https://www.thehindu.com/business/Industry/lockdowns-to-dent-gold-sales-on-akshaya-tritiya/article34552758.ece

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