Akshaya Tritiya will be celebrated across the country on Sunday, 26th April 2020. But this year celebrations will be locked indoors given the pandemic situation.
Akshaya Tritiya is considered to be a very auspicious day to buy gold and silver.
Economically this day is quite productive for marketers as they cash in on the festivity to boost their sales. Marketers indulge in high voltage advertisement campaigns especially the jewellery stores. In fact people in India and overseas book jewellery in advance and take delivery on Akshaya Tritiya day. It’s a day of frenzy buying for all precious metals especially gold. Sales on Akshaya Tritiya day usually increases four to five times compared to normal days, said a top gold dealer in India.
After Dhanteras, Akshaya Tritiya has been considered a festival where gold is bought in huge numbers. But this year, as the country witnesses a national lockdown, sales will be damp, remarked one of the bullion dealers in India
Akshaya Tritiya, which falls this year on April 26, is a lost opportunity for jewellers due to the nationwide lockdown. Jewellery sales have come to a standstill. Factories are closed resulting in a massive loss for jewellery manufacturers and retailers. There were many weddings that were lined up in the month of May. But due to cancellations of public gatherings like weddings, jewellers won’t be able to cash in on the festive season.
It is almost a month since the lockdown was first announced and jewellery shops remain shut. I fear they will not be able to capitalise on the huge opportunity to boost their revenues in a month traditionally known for the highest demand for ornaments.
We are concerned about the increasing financial stress this would cause us as an industry as well as they haven’t done business since March. To make matters worse gold prices were ruling high at a time most Indians consider inauspicious for buying gold. All were well stocked to meet demand after this inauspicious period ended, when a large part of the off-take is usually attributed to the spike in marriages and the auspicious period of Akshaya Tritiya. However, with the current liquidity crisis, jewellers fear that whenever they are allowed to raise their shutters, customers will rush to sell their gold holdings in order to generate cash.
There are jewellers who are accepting bookings, but all deliveries are expected to be processed after the lockdown.
With offices shut and lack of liquidity in markets, sales figures will not even be close to impressive. World over the pandemic has affected all possible markets and not even we have been spared.
We saw gold performing extremely well as the year started. In fact, RiddhiSiddhi Bullions Limited was expecting to have good sales figures in the current years Akshaya Tritiya. But even we at RSBL could not have predicted this drastic dip in global growth.
The precious metals markets, especially jewellers, will suffer a huge setback and it will take a long time for things to get back on track.
But for the ones who are really keen to buy gold on Sunday, they need not worry. The option of buying gold online(in the form of ETF) is always open and safe I’d say. Sadly, physical gold shops will be shut and online would be the only choice available for gold buyers.