Ahmedabad Jewellers and Bullion Traders Experience Slow Sales on Akshaya Tritiya
Despite hopes for brisk sales on the auspicious day of Akshaya Tritiya, Ahmedabad jewellers and bullion traders faced a lackluster day on Friday. The surge in gold prices, reaching Rs 75,500 for 10g, which was an increase of Rs 1,700, dampened the expectations of good sales. Additionally, the international market saw prices touch $2,375 per troy ounce, further affecting the domestic market.
Insight on Gold Sales Decline
According to estimates by the India Bullion and Jewellers’ Association (IBJA), gold sales on Akshaya Tritiya plummeted by a sharp 66% to 150kg from last year’s 450kg. This decline in sales was attributed to the rise in international gold prices due to the anticipation of a rate cut and an increased demand for gold as a safe-haven investment.
Preference for Bars and Coins
Out of the sales registered on Friday, approximately 60% came from bars and coins, while jewellery made up the remaining 40%. The escalating prices led retail buyers to prefer lightweight and 16 and 18-carat jewellery over traditional heavier designs.
Insight into Buyer Preference
The shift towards lighter and contemporary designs, along with the auspicious Akshaya Tritiya muhurat, did not provide significant relief to the market. Buyers showed a preference for 16 and 18-carat gold jewellery due to the high price of gold. Moreover, some investors opted for pure gold coins and bars as investment alternatives.
Effects on Jewelry Purchases
Although routine purchases of light and medium-weight gold jewellery continued, the sharp increase in prices hindered potential sales. Jewellers in Ahmedabad expressed that sales would have been better if the prices had not surged.
Silver Demand and Pricing
Interestingly, the demand for silver remained relatively steady across various forms such as jewellery, coins, bars, and artefacts. Silver was priced at Rs 85,000 per kilo in the domestic market on Friday, indicating a diversified preference among buyers.
Insight on Varied Buyer Preferences
The consistent demand for silver items in different forms suggests that buyers are exploring a variety of options beyond gold. This diversified preference reflects the evolving choices of consumers in the precious metals market.
Overall, the sluggish sales on Akshaya Tritiya in Ahmedabad underscore the impact of price volatility on buyer behavior, highlighting the need for jewellers and bullion traders to adapt to changing market dynamics effectively.
