Gold losing its sheen amid Covid surge

The rising cases and lockdown imposed by the government appears to be forcing people to hold on to cash rather than invest in the yellow material even during Akshaya Tritya

Hyderabad: For the second consecutive year, gold sales may not glitter on Akshaya Tritiya to be celebrated on Thursday due to various reasons including the just-started Covid-triggered lockdown and people’s preference to hold on to cash to meet any medical emergency.

Buying gold on Akshaya Tritiya is considered auspicious by many and jewellery outlets come up with different offers to woo customers. Given the current situation the chances of people going in for gold appear bleak with many jewellers expecting sales to be below normal.

“It will be great if the sales are 15 per cent of what it was last time. Sales this time are going to be very negligible,” says Hari Kishan Gupta, former president of Twin Cities Jewellers Association.

Apart from other factors that could affect sales this year is people’s preference to keep cash at home, given the pandemic situation. Most people are keen on maintaining a healthy bank account or keep cash at home to meet medical emergencies, if any, he said, adding that every hospital was insisting on cash payment and asking the patients to apply for reimbursement from respective insurance companies.

Apart from the customers’ buying sentiment, the timings to operate the shops in the current lockdown period also seems to play a major role. “No customer will want to get up early and purchase gold before 10 am when the shops have to pull shutters,” says Rajesh Agarwal of RG Jewellers.

Though there is online shopping facility, very few people opt for this since women prefer to buy gold only after thoroughly checking the designs and other aspects, he added.

Also, most people purchase gold in coin form and not many Jewellers are holding gold in coin form as most of them have stocked up ornamental jewellry in the hope of good sales due to the marriage season.

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