Gold demand rises by 14% on Akshaya Tritiya

The faith of festival has dominated the global recession and skyrocketing prices of gold, as this Akshaya Tritiya has witnessed a 14% growth in selling price of gold despite 25% inflation in gold prices.

According to World Gold Council (WGC), this year on April 27, the day of Akshaya Tritiya, the sale of gold in value terms rose to Rs.72.80-billion from Rs.63.59-billion in 2008.

However, in volume term, the demand dipped from last year’s 48.9 tons to 45 tons because of soaring prices, WGC reported.

This year the festival fell only one day while last year it was celebrated on May 7 and May 8 and it can also be a reason of slipping demand of gold in volume term.

Last year, the gold price was Rs.11,800 per 10 gram while this year on the same festive day, it reached to Rs.14,700 per 10 gram, a 24.57% rise. But the faith of the festival has forced the people to rush to the shop and buy the yellow metal.

The Hindus went to the shop and bought gold, but this time the volume was meager, only for following the value of the festival.

Last year customers had purchased quantum of jewelries but this year, despite several attractive discounts on ornaments, the customers preferred to purchase two to five grams gold coin in Delhi, as showroom owners informed.

The demands of Hallmark jewellery were higher and it registered an impressive result this year in selling, sources reported.

Commenting on the performance of gold on Akshaya Tritiya, Ajay Mitra, managing director, World Gold Council, Indian Subcontinent said, “The sales have been very positive for gold. In value terms, the growth has been impressive in spite of the price increase of 25%. Large and established players selling hallmarked jewellery have performed better than the market.”