Gold Jewelry Demand in India Expected to Soar on Festival Purchases
April 16, 07
Jewelers across
While there is no accurate compilation of the actual sales, estimates place the amount of gold sold in the four states of
Most retailers kept their stores open from 6.30 am to 11 pm to satisfy the extra rush, while a number had even launched pre-booking schemes for the convenience of their customers. In some cases last year, individual stores reported 200-300 percent increases in the demand for the yellow metal on this occasion.
Diamond jeweler Damas is offering customers a free pearl necklace on orders above a specified amount, while Gitanjali’s gold brands (Collection G, Gold Expressions, Inspirations, Maya Gold, etc) are discounting prices and offering free gold pendants. Gitanjali also unleashed a media–promotion blitz.
Akshay Tritiya is also being promoted online, and sites such as indiaplaza.in and bsbazaar.com feature offers for the occasion.
With demand for gold as an investment on the rise (last year this category saw a 38% rise), a number of jewelers are also offering special gold coins to buyers. Gold Club of Chennai is introducing 24-carat gold coins in its over 200 member outlets, including some of the largest retailers like Nathella Anjaneyulu Chetty, G.R.Thangamaligai, Original Kerala Jewellers, Mehta Jewellery, Vummidi Bangaru Chetty, Prince, Kirtilal, Khazana and Vummidi Bangaru Jewellers.
The occasion has become such an important one for jewelry purchases, that this year even Indian jewelers in Dubai are conducting special Akshaya Tritiya promotions.
Akshaya literally means abundance, and it is widely believed that any thing new started on this day, or any purchase made on this will be multiplied and bring luck and success.
Though it was traditionally not a major jewelry buying occasion in the past, sustained promotions, particularly by World Gold Council over the last few years, have brought gold and jewelry into the limelight, and there has been a huge surge in the demand for the yellow metal on this day, particularly in South India.
Some analysts have expressed the opinion that high gold prices could have a dampening effect on demand this year, and that the off take in the market has only shown an increase from early April onwards.