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The gold rush is on

Prices of the yellow metal may have touched dizzying heights, but that is not coming in the way of people buying it on Akshaya Tritiya, writes SUBHA J RAO

ALL THAT GLITTER FOR AKSHAYA TRITIYA

For a while, it looked like the marketing blitzkrieg called Akshaya Tritiya had found a formidable foe in the unprecedented rise in gold prices. From Rs. 585 per gram last year, rates have climbed to a dizzying high of Rs. 890 (as on Friday).

But that seems to have done little to dampen the spirit of gold lovers who continue to throng stores in search of that perfect ornament to be worn on A-Day.

Last year the rush started more than a week before Akshaya Tritiya. Stores were choc-a-bloc with those who believed this was the day to buy gold. Freebies and emotional ploys like ornaments being blessed before being handed over only added to the excitement.

This year has been slightly different. Though the volumes are intact, the market has warmed up only a couple of days before the day.

The World Gold Council (WGC), an international organisation funded by leading gold mining companies, looked at a 30-35 per cent hike in sales last year. But, volatility in prices has seen them bringing it down to a realistic 15-20 per cent this time around.

K. Shivram, Vice-President, WGC, says that despite the prices, the mood is upbeat, with crowds already milling around jewellery stores. "Buying has already started in some markets where it is more of an `Akshaya Tritiya week'," he says. And, on April 30, he expects a huge frenzy, no matter at what rate the gold sells.

"We expect prices to be firm. Internationally, the indication is that prices will be steady," he says.

That is what local stores believe too. Offers range from an extra gram of gold for every purchase of 8 grams to silver coins and discounts on making charges. As if that is not enough, every store has made it a point to remind people that this is `The Day' to wear new gold.

At Kirtilals, V. Balaji, (Head Marketing), says there is little effect of the price-rise. "The trend is definitely not sober and there is consistency in sales," he says. The store has launched tamper-proof 22 and 24 carat gold coins for the occasion.

Every year, the last three days leading to Akshaya Trithiya witness maximum sales. "This year is no different," says Badrinath Kota of Sreekota Jewellers.

Customers at Alukkas, which is celebrating its second Akshaya Tritiya in town, have already started booking their chosen piece in the yellow metal, in a bid to beat the last minute rush. The store is looking at a 25 per cent hike in sales this year.

However, some jewellers admit that the buzz in the gold market has come down. The steep increase in prices has resulted in many people opting out of buying gold. "In fact, more people are exchanging old gold rather than going in for cash purchases. We fear a 50 per cent drop in sales," they say, on condition of anonymity.

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