NEW DELHI: Given the rising graph of coronavirus cases in many states, gold jewellers are staring at another year of subdued activity this Akshaya Tritiya. The fledgling recovery in gold demand in the first three months of the year may be snuffed out with the renewed surge in Covid-19 infections and the consequent localised lockdown imposed in at least 22 states even as the demand-supply dynamics this year are very different unlike the last year when India announced a nationwide lockdown.
Data from the World Gold Council (WGC) showed that demand for the yellow metal in the January-March quarter saw a growth of 37 per cent year-on-year at 140 tonne due to ease of restrictions, pent-up demand and softening of prices.
“Consumer demand, as compared to previous years, has taken a hit as stores are either closed or are operating only for a few hours because of the lockdown and restrictions across states,” said Suvankar Sen, CEO, Senco Gold & Diamonds.
According to Pankaj Arora, national convener of All India Jewelers and Goldsmith Federation (AIJGF) “there were sales of more than Rs 10,000 crore on this auspicious day in 2019, but last year on the same day due to the nationwide lockdown, sales stood at just Rs 500 crore.
With Akshya Tritiya falling in the lockdown period for two continuous years, the gold and jewellery trade has suffered a big setback,” he added. Somasundaram PR, managing director of WGC (India) believes that the second half of 2021 could see a rebound in demand. “First quarter demand was very good in spite increase in gold prices. But the disruption due to the pandemic may mean a muted Akshaya Tritiya. By June, however, things may become better,” he added