Jewellery retailers fear a lacklustre Akshaya Tritiya this year due to soaring gold prices

Jewellery retailers fear a lacklustre Akshaya Tritiya this year due to gold prices soaring around 15-20 per cent. Volume de-growth is expected for gold jewellery sales this time as compared with last year.

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“This Akshaya Tritiya is expected to be dull volume-wise for the industry. Because the gold price has gone up by around 20 per cent, we are expecting that the volume would be hit by 15-20 per cent. Value-wise you would see a status-quo,” said Suvankar Sen, MD & CEO, Senco Gold and Diamonds.

Akshaya Tritiya, which falls on May 10 this year, is considered auspicious to buy gold. Customers generally make a beeline to jewellery shops across the country to buy gold ornaments for celebrating the festival. However, the present rally in gold prices is expected to dampen consumer demands during this Akshaya Tritiya.

Gold prices hit an all-time high on Friday as escalating geopolitical tensions in the Middle East and economic concerns about China spurred robust demand.

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In order to combat the low demand conditions for gold jewellery, Kolkata-based Senco Gold and Diamonds is focussing on sales of diamond jewellery and lightweight jewellery. The retailer is also giving discounts in making charges.

“Diamond jewellery constitutes around 10 per cent of overall jewellery sales. If sales of gold jewellery rose 5 per cent in terms of volume last year, then that of the diamond jewellery grew 20 per cent during the same time. Diamond jewellery is more aspirational,” Sen pointed out.