Kolkata: Buyers may advance their gold jewellery purchases for the April-July wedding season by booking orders on Akshaya Tritiya if the recent softening in prices persists, said Arun Narayan, chief executive of Tanishq, the jewellery division of Titan.
Demand is expected to skew toward 18-carat and lightweight designs in eastern and northern markets, while western and southern regions could see stronger traction for heavier pieces, he told ET.
Akshaya Tritiya, which falls on April 19 this year, is considered an auspicious day in the Hindu and Jain calendars for buying gold.
Narayan said there will be three types of buyers on Akshaya Tritiya – investors, who will buy coins; value seekers, who want to buy jewellery at the best value; and design seekers, who look for designs and are ready to buy heavy jewellery.
“This Akshaya Tritiya we are expecting good growth. But we cannot put any numbers now as we are in the silent period,” he said.
On Monday, gold traded in Mumbai’s spot markat 1.47 lakh per 10 grams without a 3% goods and services tax (GST), down from the peak of about ₹1.8 lakh per 10 gm recorded late January but much higher than around ₹88,000 a year ago.
Tanishq CEO said that 18-carat jewellery, which is 25-30% cheaper than 22-carat jewellery, is gradually picking up in India. “Demand for 14-carat jewellery is picking up too. We have created a good inventory of lower caratage jewellery for the upcoming Akshaya Tritiya. Also, we expect coloured gemstone studded jewellery, for which we have launched a new category, to do well,” he said.
Narayan said there will be advance booking of gold jewellery on Akshaya Tritiya for the upcoming wedding season. “If gold stays on the lower side, the consumers sitting on the sidelines will come out to buy jewellery. Old gold exchange has also become a major source of revenue for Tanishq. More than 50% of our sales now come from old gold exchanges, and that trend will continue during Akshaya Tritiya,” he said.
Meanwhile, gold extended its decline on Monday as the escalating war in West Asia heightened energy supply and inflation risks, while a surprise drop in US jobless claims reduced expectations of an interest rate cut. In the international market, gold fell 1.6% to nearly $4,600 an ounce, after losing 1.7% in the session preceding the long weekend.
