The festival of Akshaya Tritiya is a significant day in Hindu culture, and for many Indians, buying gold on this day is believed to bring prosperity and good fortune to their households. According to Kama Jewellery Managing Director, Colin Shah, gold buying among Indian consumers typically peaks during this festival due to the cultural importance of the day.
Shah noted that the positive sentiment among buyers can lead to a 10-15 per cent rise in jewellery sales this season. However, the prices of gold have remained elevated amid global economic uncertainties, with the price of 24-carat gold standing at Rs 95,420 per 10 grams, 22-carat gold at Rs 91,300 per 10 grams, and 18-carat gold at Rs 77,290 per 10 grams.
A trend that is gaining momentum in the market is the preference for lightweight jewellery among young consumers. Shah stated that this trend is expected to drive sales in the coming months. For instance, last week, gold prices in India briefly touched Rs 1,00,000 per 10 grams for the first time ever, before the prices corrected due to a decline in global prices.
Last week, the price of 24-carat gold jumped to Rs 1,00,000 per 10 grams, jumping by Rs 3,300 from Rs 96,670, and the price of 22-carat gold climbed to Rs 97,600 per 10 grams, while 20-carat gold reached Rs 89,000, and 18-carat gold touched Rs 81,000 per 10 grams.
Experts believe that the sudden spike in gold prices is mainly due to growing global demand for gold as a safe-haven investment. The price of 10-grams gold has increased by more than 50 per cent over the past year, and the market is expected to continue to drive prices up.
October futures on the Multi Commodity Exchange (MCX) also crossed the Rs 1 lakh mark on April 22, indicating the strong demand for gold in the market.
The rising demand for gold is likely to benefit the gold jewellery industry, which is expected to see a significant increase in sales this season. As Colin Shah noted, the positive sentiment among buyers can lead to a 10-15 per cent rise in jewellery sales this season.
However, the high prices of gold may deter some consumers from buying, particularly those who are on a tight budget. Nevertheless, the festival of Akshaya Tritiya offers a unique opportunity for consumers to make a purchase and reap the benefits of buying gold during this auspicious day.
In conclusion, the festival of Akshaya Tritiya is a significant day for the Indian gold market, and the rising demand for gold is likely to drive sales in the coming months.
As the gold jewellery industry gears up for the festive season, consumers are advised to make the most of this opportunity and invest in gold jewellery to reap the benefits of prosperity and good fortune.
| Key Highlights |
|---|
| Gold prices surge amid global uncertainties |
| Akshaya Tritiya sees increased buying due to cultural significance |
| Positive sentiment among buyers expected to drive sales |
| Lightweight jewellery gaining popularity among young consumers |
To illustrate the significance of Akshaya Tritiya in the Indian gold market, consider the following example:
A young couple, Ramesh and Nalini, decided to buy gold jewellery during Akshaya Tritiya. They chose a beautiful 10-grams gold necklace, which they believed would bring them good fortune and prosperity in their lives. The couple was delighted to find that the prices of gold had reached an all-time high, but they were willing to pay the premium to make their purchase during this auspicious day.
The purchase of gold jewellery during Akshaya Tritiya is a tradition that has been followed by many Indians for generations. The festival is considered a sacred day, and buying gold is believed to bring good fortune and prosperity to households.
In conclusion, the festival of Akshaya Tritiya is a significant day for the Indian gold market, and the rising demand for gold is likely to drive sales in the coming months.
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