Indians value gold for investment due to cultural beliefs. The auspicious occasion of Akshaya Tritiya, which falls on Friday, is the time people buy gold for good fortune and prosperity.
Gold prices rose sharply and settled at Rs 73,900 per 10g in the local markets. The price of gold last year on the same festival day was Rs 62,000 per 10g, indicating 19% returns on the precious metal.
Fall in sales
The India Bullion and Jewellers Association (IBJA) predict that gold sales will touch 225 kg in Gujarat this year, which will be nearly half of last year’s Akshaya Tritiya retail here.
Since price is high, sales may decrease in volume. There are many waiting for the price to drop. Overall sales, which were 400-425 kg last year, are likely to be 200-225 kg this year, said IBJA sources.
The rise in gold prices can be attributed to several factors, including inflationary pressures, geopolitical tensions and disruptions in global trade, according to experts. These factors have fuelled investor interest, propelling gold prices to record levels.
Gold continues to reign supreme as a hedge against economic uncertainty and volatility, say jewellers. However, they anticipate a shift towards lighter and more affordable options, such as 14, 16 and 18 carat rose gold and lightweight jewellery.
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