Steady footfall, cautious buying mark Akshaya Tritiya sales in Chennai

Jewellery showrooms in Chennai witnessed steady footfall on Wednesday, which marked Akshaya Tritiya day. While sales picked towards evening hours, retailers noted that customers purchased nearly 20-30% less gold, compared to last year.

The fact that gold prices that dropped mildly on Wednesday compared to last week, meant customers still came in, though in fewer numbers. One gram of 22 carat gold was sold for ₹8,980- and one-gram silver for ₹111.

Soaring gold prices had prompted many customers to opt for token purchases or light weight jewellery to suit their budget. Concerns over further hike in cost of precious metals also influenced buying decisions, said jewellers. Cost of 24 carat gold had surged by 35.3% in the past year from ₹73,200 per 10 gram in May 2024 to ₹99,000 on Wednesday.

Sangeetha Saravanan, a Kilpauk resident, was one of the early customers to jewellery stores on Wednesday morning. “I visited a jewellery store at 6.50 a.m. to make the purchase during the auspicious hours. I did not want to break the annual tradition and exchanged old, damaged jewels to buy 18 carat jewellery within my budget. The discounts on offer today, helped in saving money,” she said.

There has been a shift in consumers’ purchase behaviour this year with residents making more cautious choices. M.Anbumani of Mogappair said, “I did not want to miss on the traditional investment and festive purchase. Instead of the usual 8-10 gram purchase, I restricted to four gram ornament this year.”

L.K.S.Syed Ahmed, advisor, Tamil Nadu Jewellers Federation, noted that youngsters preferred light-weight designs to match their daily wear. Gold bangles with rhodium weighing eight gram were a popular choice apart from gold coins.

This year, gold coins sales went up by 20% compared to last year. N. Anantha Padmanabhan, former chairman, All India Gems and Jewellery Council, said light weight jewellery weighing up to 20 gm contributed to nearly 60% of the day’s sale apart from silver articles. Prices may stabilise in a few months.