Gold, Silver Price Likely to Shoot Up this Akshaya Trithiya

The trend of gold-buying started only in the past 10 years because of marketing by jewellery shops
Gold, Silver Price Likely to Shoot Up this Akshaya Trithiya

BENGALURU: You may have to shell out more this Akshaya Trithiya as the price of gold is expected to go up. Akshaya Trithiya — an auspicious day to buy gold and property — falls on May 9.

There are more than 10,000 jewellery shops across the state, of which 40 per cent are in Bengaluru.

T A Saravana, president, Karnataka Jewellers’ Association, explained what is pushing the price up.

Saravana said the proposed one per cent excise duty on non-silver jewellery and the increase in import duty will contribute to the increase in the price of gold.

Also the value of the rupee against the dollar is decreasing, making the share market fall, he said.

Saravana added that at present the price of 24 karat gold is Rs 29,800 for 10 gm, which may go up to Rs 32,000 during Akshaya Trithiya, while 22 karat gold which is Rs 27,400 per 10 gm now may go up to Rs 28,500 per 10 gm.

“Even prices of silver may touch Rs 39,000 a kilo against the current price of Rs 36,960 a kilo,” he said.

However, the price may not be a deterrent for  buyers of gold. “Gold price has been increasing each year. Price dropped only in rare instances. I buy gold every Akshaya Trithiya. If the price is higher, we will buy less gold. However, we will buy gold, as it is an investment as well,” said Padmini Sridhar, a resident of HSR Layout.

Shalini Vijay, an IT employee, said “My mother used to buy gold, so did my mother-in-law. The price of dal and rice too has increased. Will we stop buying them?” she said.

Lure of Gold

Akshaya in Sanskrit means one that never diminishes and the festival day is believed to bring good luck and success. Hindus believe they can get lasting prosperity by buying precious metals on the day. The trend of gold-buying, however, started only in the past 10 years because of marketing by jewellery shops

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