High inflation and Ukraine crisis boost jewelry sales on Akshaya Tritiya
Jewelers in Kolkata are happy on the auspicious day of Akshaya Tritiya to witness a 30-40% increase in footfall compared to normal days, as rampant inflation, the Ukrainian crisis, besides religious feelings, prompted people to buy gold and bullion as assets.
This year, stores ordered calendars and treats for guests who have been away for the past two years due to the Covid-19 pandemic and closures.
We have witnessed tremendous response for gold jewelry as well as bullion in this Akshaya Tritiya. Apart from religious sentiments, people are cautious when spending on discretionary and luxury items and on tourism, reaping the benefits of gold, the president of the India Bullion and Jewelers Association West Bengal told PTI, Ashok Begani.
Also, he said, some of the clients said the Ukraine-Russia war reminded them that if a family is displaced, assets like gold can be taken away, not real estate that should be left behind. .
Customers are turning to gold jewelry and bullion to hedge against high inflation. The volatility of the stock market has also made it conducive to the attractiveness of the yellow metal. According to the comments, people have doubled their investments in gold jewelry and bullion from 25% to 50% of their investable excess funds, he said.
Swarna Shilpa Bachao committee secretary Bablu Dey said there has been a steady improvement in the flow of customers since the morning.
We expect sales to increase by at least 20% compared to normal days, said the head of the organization representing the small jewelers. All the jewelers have recognized that there is a strong jump in activity compared to the Covid years. However, overall business is yet to return to normal from pre-covid times, said owner of RN Dutta’s Grandson, a jewelry store in Gariahat area, south Kolkata. Senco Gold & Diamonds MD Suvankar Sen said the year could see a strong upward trend in demand.
Sanjay Karmakar, owner of a small shop in the Dhakuria region, said there was no noticeable improvement in sales.
My store caters to the low income group and the high price of gold is a major headwind for this segment of the population. We are inviting people and handing out sweets that will help revitalize customer connection hoping for better days,” he said. Jewelry chains and single-brand stores offer programs and discounts on fees and freebies to promote sales.
There has been a positive sentiment in the market over the past 10-15 days and this is likely to continue on Akshaya Tritiya’s auspicious day, All India Gem and Jewelery Domestic Council Vice Chairman Shyam Mehra said.
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