With cash flow almost normalising after demonetisation, customers on Friday thronged jewellery shops across the country to usher in Akshaya Tritiya.
"We are seeing good footfall in our stores. In the last two months, after demonetisation, people have again started buying gold. We expect sales to go up by 40 per cent this Akshaya Tritiya compared to last year as prices are almost at the same level," Balram Garg, Managing Director, P.C. Jeweller, told IANS.
Gold price hovered around Rs 29,000 per 10 grams for 24 Carat purity in the national capital on Friday.
Akshaya Tritiya, a holy day for Hindus and Jains, is believed to bring good luck and success. It is considered to be an auspicious day to bring home gold.
Buoyant gold sales on Akshaya Tritiya brought cheers to jewelers in Mumbai as well. Retail outlets saw crowds as people made their customary festive purchases on Friday morning.
All India Gems & Jewellery Federation President Nitin Khandelwal said the trend to buy god started since Gudi Padva in March and continued owing to the ongoing marriage season.
"There are significant crowds in jewellery shops all over and people, more than 75 percent, are opting for big and small items of gold jewelleries," Khandelwal told IANS.
Mumbai Jewellers Federation President Rakesh Shetty said given the crowds, especially in suburbs, the gold sales could surpass even the Gudi Padva sales.
"Today, the gold prices are Rs 29,300 in Mumbai, coming down over the past few weeks. This has encouraged customers. They are buying both jewellery and coins," Shetty told IANS.
"Jewellers are expecting a 20 per cent growth in demand both in volume and value for gold and silver," India Bullion and Jewellers Association's spokeperson Pankaj Parekh told IANS in Kolkata.
He said gold price may shoot up soon following international tensions. So, Akshaya Tritiya is seen as the right time to buy gold.
Compared to last year's Akshaya Tritiya, the price of gold now is relatively low. The yellow metal's price was over Rs 30,000 per 10 gm in 2016.
"Similarly, silver price remains at a lower range at Rs 40,000-41,000 a kg, which is conducive for demand," Parekh said.
Bengaluru was no exception. While many people bought gold to ring in good tidings, others chose jewellery as an investment.
Some jewellers in Bengaluru felt that demonetisation and restriction on cash payments would continue to affect the sale of gold jewellery and ornaments.