Gold News

Akshaya Tritiya: Indians "Buying Gold in Lower Volume" This Year

EARLY estimates from gold dealers in India suggest that people were Buying Gold in lower volumes at this year's Akshaya Tritiya festival compared to last year.

Earlier in the week, gold dealers were reporting strong demand from people Buying Gold ahead of the festival, which fell on Tuesday 24 April.

Over the past two days, however, dealers have reported a slowdown in sales volumes compared to last year, with several citing higher domestic Gold Prices.

"Gold sales were lower than last year," one official at GTM Jewellery told news agency Press Trust of India.

"The demand was less because of high prices. People are confused whether to buy now or wait for price fall, if happens in future."

Overall gold sales during the festival are estimated to have fallen by around 50% to 10 tonnes, according to news agency Reuters.

Indian gold dealers staged a three week strike beginning last month, after the government announced it was doubling import duties on Gold Bullion, as well as extending a sales tax on Buying Gold jewelry by applying to unbranded as well as branded items.

Ramavtar Verma, general secretary of the Delhi Jewellers and Goldsmith Association, is another who reports lower sales volumes than last year's Akshaya Tritiya.

"There was token buying of Gold Coins," he says.

"There was not much sale in jewelry. Shop keepers refrained from keeping heavy stock on the festival day in view of pending issue of imposing of excise duty on unbranded jewelry."

Gold Prices in India were around Rs22,000 per 10 grams at the time of last year's Akshaya Tritiya. Since then, they have risen to over Rs29,000 per 10 grams.

Times of India meantime reports that while Buying Gold remained an important part of Akshaya Tritiya this year, many customers were showing an interest in diamond jewelry as well.

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