Published
Apr 18, 2018
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Jewellery market expects growth despite high prices for Akshaya Tritiya

Published
Apr 18, 2018

The Hindu springtime festival that falls on April 18 this year, Akshaya Tritiya, is expected to result in ten to 15 percent growth in gold jewellery sales despite high prices.

Akshaya Tritiya is expected to result in ten to 15 percent growth in gold jewellery sales - Hazoorilal Legacy- Facebook


Gold prices are higher this year than at the same time last year as ten grams of 24 carat gold is currently priced at 31,000 rupees where it was 29,000 in April last year. However, this is not expected to dampen the mood of customers buying gifts for the Akshaya Tritiya festival. It is expected that buyers may gravitate towards lighter gold jewellery in order to work around the higher prices this year.

“Last year, we had a good Akshaya Tritiya because of the pent-up demand after the slump during demonetisation, and pre-emptive purchases because of GST,” the CEO of the gold jewellery brand Orra, Vijay Jain, told the Economic Times. “This year, owing to higher prices, while we see an uptick in demand, we expect growth to be in the lower double digits.”

This time last year, the Goods and Services Tax (GST) had not yet been introduced and there was consumer speculation about the changes to jewellery pricing it would bring. “We are confident about this year and expect more sales than previous year. The industry has come back to normalcy after hiccups like demonetisation and GST and there are a number of positive triggers,” opined Ahammed M P, the Chairman of Malabar Gold and Diamonds.

As India’s gold jewellery market becomes increasingly organised, this is also expected to boost sales. The past year has been a tough one for the jewellery industry in India but this spring could see it bounce back.

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