Informist, Friday, May 14, 2021

By Roshni Devi

MUMBAI – Stuck between a gruelling pandemic and lockdown-like restrictions imposed by many states, sales of gold on the occasion of Akshaya Tritiya have been poor so far today.

Akshaya Tritiya is considered an auspicious day by Hindus, and many people buy gold on this day due to the belief that it brings prosperity.

"Since most states are in a lockdown, digital and online sales are the only way people are buying gold today. The numbers are not so good, but we are hoping it will pick up as the auspicious time extends through Saturday this year," Prithviraj Kothari, president of the Indian Bullion And Jewellers Association said.

Telangana, Karnataka and Tamil Nadu have imposed complete lockdowns while New Delhi, Maharashtra, Andhra Pradesh, Kerala and many others have strict curbs in place.

Jewellers have offered shopping through video calling facility, browsing through e-catalogues, virtual trial rooms, and home delivery for the convenience of customers. They have even rolled out offers like discounts on advance booking of gold and up to 100% discount on diamond jewellery-making charges.

But even the promotions have had little punch this year.

"Only old customers are doing some token buying for Akshaya Tritiya. It is the second year that Akshaya Tritiya will be a washout as the entire country was in a lockdown during the festival in 2020," said G. Jaya Acharya, proprietor of Karnataka-based Novelty Jewellers.

Gold prices have fallen 5% since the beginning of the year, and are currently at 47,556 rupees per 10 gm. Sales from brick-and-mortar stores are a washout for today, but online sales of gold have improved. Investors can opt for gold exchange-traded funds, gold funds, e-gold and sovereign gold bonds.

"In 2020, Augmont sold around 15 kg of digi gold on Akshaya Tritiya, and in 2021 the same volume has increased by almost 150% as Augmont has sold around 30 kg of gold as of now (1430 IST)," said Ketan Kothari, director of online gold retail company Augmont. He added that consumers preferred gold coins and bars in the range of 3,000-4,000 rupees.

According to data by Johns Hopkins University, India has more than 24 mln COVID-19 cases as of today, and has recorded 262,317 deaths. Of the people affected by the virus, many are in critical condition.

"Families who have lost someone due to the virus or who have someone in critical condition now are certainly not going to buy gold. People will prioritise survival and saving cash," said a Mumbai-based jeweller.

The weak sentiment for gold is also evident from the fact that BSE and the National Stock Exchange will not conduct extended trading sessions for gold exchange-traded funds and sovereign gold bonds today. 

"There is no money and there is no investor interest," a trader said.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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