Coronavirus Slams Gold Sales on Akshaya Trithiya

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Coronavirus Slams Gold Sales on Akshaya Trithiya
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- Akshaya Trithiya in 2021 was a bust, similar to the one in 2020, as jewellers shuttered shops on account of the second wave of the pandemic.

A report in The Economic Times said that demand for gold crashed by 75-80% in 2021 compared to 2019. The same report quoted Surendra Mehta, national secretary of the India Bullion & Jewellers Association who said, “The current Covid situation is not favourable for purchasing gold though Indians prefer to buy the yellow metal on Akshaya Tritiya to bring in luck and prosperity. Some of them might make some token purchases. Demand is down by more than 80% this year.”

A PTI report said that India witnessed only 10% of sales compared to pre-COVID times. Only 20% of Kalyan Jewellers India Pvt Ltd (NS: KALN )’ stores in the country are functioning as of now. In Mumbai, sales are down up to 95%.  

A Bloomberg report quoted Ashish Pethe, chairman of the All India Gem and Jewellery Domestic Council who said, “Unfortunately about 80% of the country is in a lockdown and sales will be impacted again this year. The second wave is much more severe than last year and the mood is also very somber with almost every family touched by the virus. So no one is in the mood to buy gold.”

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100
  • Ashim Maheshwary @Ashim Maheshwary
    very true
    Like 2
  • Gaja Nand Aggarwal @Gaja Nand Aggarwal
    Gold prices may slide up to three percent due to very low sales all over the world
    Like 3

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