New Delhi: The craze for gold was on full display Tuesday, especially in the South, on Akshaya Tritiya, as people rushed to buy the metal, pushing jewellery sales up by 10-20 percent although prices fell across major cities, except Chennai.
Shops in Chennai were open over-night for people to make their purchase on a day which is considered auspicious for buying gold on belief that it heralds more prosperity in the year.
Advance bookings were also entertained along with gift schemes to attract buyers who also thronged stores in Kerala.
Jewellers and bullion traders said retail demand remained robust in most parts of the country as prices have declined by about 10 percent from last year's 'Akshaya Tritiya'.
In South India, which contributes about 60 percent of total sales on this day, gold sales remained brisk.
In some parts of the country, good demand was seen for diamonds as well due to less price volatility, jewellers said.
In the National Capital, gold prices fell by Rs 100 to Rs 27,100 per 10 grams. Similar was the trend in other cities, except Chennai where prices went up by Rs 80.
Delhi-based Khanna Jewellers' Chairman Vijay Khanna said sales are up by 10-15 percent and are better than last year.
"Jewellery sales are 12 percent higher on year-to-year basis as prices are down by 10 percent at Rs 26,800 per ten grams today as compared with Rs 30,200 per ten grams in the year-ago," Mumbai-based All India Gems and Jewellery Trade Federation Chairman Manish Jain said told PTI.
He, however, said that sales of gold coins and bars for investment purpose were lower by almost 25-30 percent.
Madras Jewellers and Diamond Merchants Association President Jayantilal Challani said, "The response has been very good and as good as it was last year."
Kerala-based Kalyan Jewellers, which has 66 stores across the country, said it expects a sales growth of 5-7 percent.
"Sales are very good. Seeing the trend from the morning, we expect 5-7 percent growth in sales in each of our store. But our overall growth in revenue would be 30 percent as the company has opened 11 new stores," the company's Director Rajesh Kalyanaraman said.
Kolkata-based PC Chandra Vice-President (Marketing) Anil Jain said this year demand is higher by 15-20 percent in jewellery.
Another Kolkata-based jeweller Nemichand Bamalwa and Sons Founder Partner Bachhraj Bamalwa said: "We have good sales. Around 15 percent increase in jewellery sales. There is no great demand for coins and bars as people are not inclined to buy for investment purpose today".
When asked about good sales in South India, Manish Jain said, "South is doing good because people wait for this auspicious day to buy jewellery. People are happy to buy at this rate."
Jain also said that there was 20 percent less demand in areas where there was crop damage due to unseasonal rains.
Fall in prices and shift in buying to organised retail stores from unorganised sector are reasons behind surge in sales, he said, adding that since people prefer to buy gold in South, 80 percent sales are of gold jewellery.
World Gold Council (WGC) India Managing Director Somasundaram PR said, "What we have seen till now in the market, it appears that demand is much better than last year."
Gold prices in Mumbai, however, declined by Rs 45 to Rs 26,695 per 10 grams. Similarly in Kolkata, gold fell by Rs 105 to Rs 27,105 per 10 grams, while in Chennai it declined to Rs 27,020 per 10 grams from last close of Rs 27,200.
India, the world's largest consumer of gold, imports 800-900 tonns of precious metal annually. Anticipating higher demand during 'Akshaya Tritiya', gold imports jumped to 125 tonnes last month from 60 tonnes in the year-ago.
Incidentally in South India, some of jewellers reportedly opened their showrooms early in the morning, as against usual practice of opening stores around 10 AM.
In Tamil Nadu, gold showrooms, including in Coimbatore and Madurai, also saw brisk business.
"The normal buying sentiment has come back. Gold demand is more on the expected lines. I don't say there is buying spree, but in the urban centre, there seems to be an upward trend," WGC's Somasundaram said.
Although unseasonal rains has affected demand in some pockets of rural areas, but still the growth sentiment of Akshay Tritiya has not affected, he said, adding that social practices at times dominate economics.
