Gold prices have remained almost unchanged in the past few years. In the run up to the Akshaya Tritiya festival today, many jewellers have been hoping for an increase in footfalls. Based on the Hindu calendar, Akshaya Tritiya is on April 18 this year. Last year, the Akshaya Tritiya festival was observed on April 28. Akshaya Tritiya, also known as Akha Teej, is an annual festival considered auspicious by many to purchase gold. But what are the expectations for gold demand this year around? While most experts expect gold demand to rise on Akshaya Tritiya this year, some feel there may not be a significant rise in demand.
- Ahead of Akshaya Tritiya, many jewellers hope for increase in footfalls
- There may not be a significant rise in gold demand, say some experts
- After notes ban, GST, demand last year didn't meet jewellers' expectation
Demand for gold on Akshaya Tritiya 2017 didn't quite meet jewellers' expectations, on the back of demonetization and the rollout of GST. Abhinav Angirish, founder of www.investonline.in, told NDTV that although Akshaya Tritiya is just around the corner footfalls are "still significantly lower than usual. In fact, many industrial players are forced to give discounts on jewellery-making charges to increase sales."
Every year, many jewellers roll out promotional schemes ahead of Akshaya Tritiya to attract buyers.
Asked whether gold demand is expected to pick up on Akshaya Tritiya this year, Mr Angirish said: "Certainly yes, but nothing very significant as looks like after the two recent shocks by the government one after the other, i.e demonetisation followed by GST, people are still keeping their wallet tight. It has increased from usual, but not as much as it should have."
Akshay Tritiya is a festival considered auspicious by many to make gold purchases.
Gold "always was and will remain a useful asset class as it's a hedge against inflation and uncertainties", Mr Angirish further said.
One should have both equity and gold in their portfolio, but in certain proportions which is in line with their goal, he said.