Akshaya Tritiya: Taxes take their toll on gold

BANGALORE: After jewellers across the country withdrew the strike over increase in taxes on gold and platinum jewellery, city-based jewellers are now gearing up for the annual gold rush that i

Published: 10th April 2012 11:57 PM  |   Last Updated: 16th May 2012 07:25 PM   |  A+A-

BANGALORE: After jewellers across the country withdrew the strike over increase in taxes on gold and platinum jewellery, city-based jewellers are now gearing up for the annual gold rush that is associated with Akshaya Tritiya.

Most jewellery stores in the city have started offering pre-booking services in order to beat the festive rush. The chairman of Best of India Jewellery Show, Sumesh Wadera, said that the organisers had timed the show to attract customers who want to make their gold purchase for Akshaya Tritiya that falls on April 24.

Unfortunately for him and hundreds of other jewellers in the city, the expected increase in taxes took the sheen off gold this season. “With the increase in taxes, I do not want to purchase bigger pieces of jewellery this season. Instead, I want to look into the option of bullion trading,” says Vinoth K, a businessman who works in Commercial Street. Another banker couple, who use these occasions to purchase wedding jewellery for their daughters, are thinking of buying gold coins for the sentimental value.

Admitting this trend, secretary of Jewellers’ Association in Bangalore and proprietor of Chetana Jewellers, S  Venkatesh Babu, said that while pre-booking for Akshaya Tritiya has started, they are witnessing pre-booking only for coins. They say that big purchases or orders are yet to come in.

“Akshaya Tritiya is a sentiment purchase. So, we are seeing very little pre booking now. Also, the strike had affected the flow in the market. However, we are aggressively preparing to meet the festive rush that will peak around April last week. It is too early to  predict the response for this year,” he said. Several jewellers told City Express that it is the general pattern wherein the prices of gold increase by at least 10 to 15 per cent. They advise customers to choose from the plethora of pre-booking offers available in the market carefully.

“Some pre-booking offers allow the customers to purchase gold at the current market prices. Read the literature they give you very carefully before choosing the offer,” said Ramesh R, a bullion trader in the city.

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