Domestic demand for gold to see spike in sales, touch pre-pandemic levels: Parag Shah of HK Jewels

Assuming lower sales of 20,000 kilogram due to higher price at Rs 50000 per 10 gms, the Akshaya Tritiya market is estimated to reach pre-pandemic levels of Rs 10,000 crore, said Parag Shah, Director at HK Jewels.

April 27, 2022 / 03:02 PM IST

Parag Shah

Akshaya Tritiya has become synonymous with gold or gold jewellery in India as this day is considered auspicious for buying anything made of the yellow metal.

The Akshaya Tritiya demand slumped in the last two years as the country reeled under the COVID pandemic. This year, the auspicious Akshaya Tritiya falls on May 3.

On this occasion, even the low-income strata also buy gold as some token buying. According to the national convener of All India Jewellers and Goldsmith Federation, the apex organisation of India’s jewellery trade, gold sales touch the second-highest single-day sales on Akshaya Tritiya and Dhanteras.

Hedge against geopolitical crisis

The ongoing Russia-Ukraine turmoil gives consumers more reasons to buy gold on this Akshaya Tritiya. The prolonged global crisis, which is seeing a high inflationary trend globally, has found solace in gold as a safe bet for investment purposes. The geopolitical situation changed after Russia announced a fixed price for buying.

Source : https://news.writecaliber.com/financial-markets-middle-east-domestic-demand-for-gold-to-see-spike-in-sales-touch-pre-pandemic-levels-parag-shah-of-hk-jewels/