Akshaya Tritiya day, which is considered auspicious for buying gold, did not bring much cheer this time to the jeweller community which recently resumed business after downing shutters for the longest duration in nearly a decade.
High price
According to industry participants, the high price of the yellow metal played spoilsport as consumers appeared sceptical about a further price rise. On Monday, gold was trading at around Rs. 29,800 per 10 grams.
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Pegging the overall sales value around Rs. 400 crore, Kumar Jain, vice-president, Shri Mumbai Jewellers Association, said: “There were too many footfalls today, but sales were low compared to last year due to the high prices.” Last year, gold worth over Rs. 700 crore was sold on Akshaya Tritiya.
“Only recently, consumers bought gold at much lower prices and so the desire to buy it at such high prices was low. The rise has been too swift and it always impacts the buying habits,” said Mr. Jain.
Somasundaram P.R, Managing Director - India, World Gold Council, however, says that gold, as an asset, has not lost its sheen and buying activities actually increase when prices rise.
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