3 min readPuneApr 21, 2023 03:36 AM IST
First published on: Apr 21, 2023 at 03:36 AM IST
AN OVERALL 22 per cent increase in prices over the past six months has acted as a dampener for purchase of gold ahead of Akshay Tritiya on April 22 when customers religiously buy gold. The jewellers in the city are not very optimistic and wary about the business they would be able to generate this year.
Since December last year, gold prices have been on the rise both in domestic and international markets. At present in Pune, 10 gms of gold is being sold between Rs 59,000 and 62,000.
The price was even higher earlier this week but came down marginally due to pullback in US dollar and bond yield.
Amit Modak, CEO of Pune-headquartered jewellers chain PN Gadgil and Sons said this high price is one of the main reasons why the market is reporting lower volumes in terms of gold sales.
“Since the last month or so, we have seen even the regular buying for marriages has stopped. The high price is the only reason,” he said. Many have put brakes on their gold purchase plans in the hope of prices softening a bit. Modak said as marriage dates came nearer, people have come out to buy gold.
“Given the higher prices, the amount of gold purchased would be obviously less. While monetarily business would see an increase volume wise or weight of gold sold would be low,” he said.
On an average, a middle class family buys 300 gms of gold as wedding jewellery which would decrease. “The basics in terms of rings, necklaces, chains would be purchased but they would be light weight,” he said.
Modak said they had seen this trend in Gudi Padva – the Hindu New year also. Akshay Tritiya is considered an auspicious occasion to buy gold. “We would see business, but the volume of the business would be less in terms of weight of gold sold,” he said.
Similarly, Atul Ashtekar of the Krishna Rajaram Ashtekar Jewellers talked about a change in the gold purchase phenomenon in people, “Earlier, people used to talk about tolas (1 tola =11.63 gms) of gold but now they are talking in terms of money. Thus, instead of saying that they would be buying say 10 tolas, they would phrase it in terms of their budget,” he said.
Like Modak, Ashtekar also said this was due to the increase in price of gold. However, Modak said he felt the pent up demand in the market would help them improve sales during Akshay Tritiya. “People have waited for a month for prices to cool down and as that has not happened, they would buy as per their budget,” he said.
On an average, a middle class family buys 300 gms of gold as wedding jewellery which would decrease. “The basics in terms of rings, necklaces, chains would be purchased but they would be light weight,” he said.
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