News: India's gold shops gear up for big buying rush
(RTR 28/04/2006) Mumbai - Princeson Jose, director of Chennai-based Prince Jewellery, is certain that this Sunday, his customers won't step on each other to buy gold.
The three-store jewellery chain is gearing up for the Akshaya Trithiai festival with ample parking space, planned customer segmentation and extra business hours to manage the rush.
Across southern cities on April 30, thousands are expected to disregard skyhigh prices and queue up from early hours to buy at least a drop of gold, after a belief that valuables bought on that day would bring lasting prosperity.
"We have started taking orders in advance so that we can manage the rush better," Jose told Reuters over the telephone.
"There will be a special counter for those who come to collect their orders, so that they don't mingle with other customers and cram the shops."
Other vendors are offering home delivery and sending out vans to sell coins to ease crowds in the shops.
The ancient Hindu festival has become popular in southern India only in the last few years, after being promoted by the trade and World Gold Council seeking to boost India's annual consumption of 700-800 tonnes.
"Because of the awareness and hype generated, it has snowballed into a big event in the south," said Sanjeev Agarwal, managing director - Indian subcontinent of World Gold Council in Mumbai.
The promotion kept consumer money going away to buy mobile phones or vacations and helped sell 40 tonnes worth of gold and jewellery in southern India alone during the festival week last year, he said.
Agarwal expected this year's sales to be even more, given that the festival fell on a holiday.
HIGH PRICES MAY EAT AWAY SALES
But Consumers and retail traders are unsure this year, given prices hover around record highs. "The rise in gold prices doesn't correspond to the rise in incomes... This year, Akshaya Trithiai demand is going to be substantially down," said Daman Prakash, convenor of the Tamil Nadu Bullion Forum.
Some echo that concern. "This year prices are so high that I don't feel like buying," said Shanti Mahadevan, a 38-year-old woman in Chennai.
But, the temptation of gold lingers in others. "I would want to buy at least one gram or even half a gram," said P. Meenakshi, a 54-year-old woman in Chennai.
Gold prices reached their all-time highs in the local market last week with the 0.999 purity gold quoted at 9,560 rupees for 10 grams on April 20, a jump of nearly 54 percent over the year.
On Thursday, it sold at 9,450 rupees in the Mumbai spot market, up 125 rupees over the previous day.
Meanwhile, the industry continues its vigorous promotion of Akshaya Trithiai to take it to other parts of the country. A Mumbai jeweller said he expected strong sales on April 30.
"Coins of all denominations ranging from 1 to 100 grams would be in demand," said Trimurti Zaveri, partner in Tribhovandas Bhimji Zaveri.
The three-store jewellery chain is gearing up for the Akshaya Trithiai festival with ample parking space, planned customer segmentation and extra business hours to manage the rush.
Across southern cities on April 30, thousands are expected to disregard skyhigh prices and queue up from early hours to buy at least a drop of gold, after a belief that valuables bought on that day would bring lasting prosperity.
"We have started taking orders in advance so that we can manage the rush better," Jose told Reuters over the telephone.
"There will be a special counter for those who come to collect their orders, so that they don't mingle with other customers and cram the shops."
Other vendors are offering home delivery and sending out vans to sell coins to ease crowds in the shops.
The ancient Hindu festival has become popular in southern India only in the last few years, after being promoted by the trade and World Gold Council seeking to boost India's annual consumption of 700-800 tonnes.
"Because of the awareness and hype generated, it has snowballed into a big event in the south," said Sanjeev Agarwal, managing director - Indian subcontinent of World Gold Council in Mumbai.
The promotion kept consumer money going away to buy mobile phones or vacations and helped sell 40 tonnes worth of gold and jewellery in southern India alone during the festival week last year, he said.
Agarwal expected this year's sales to be even more, given that the festival fell on a holiday.
HIGH PRICES MAY EAT AWAY SALES
But Consumers and retail traders are unsure this year, given prices hover around record highs. "The rise in gold prices doesn't correspond to the rise in incomes... This year, Akshaya Trithiai demand is going to be substantially down," said Daman Prakash, convenor of the Tamil Nadu Bullion Forum.
Some echo that concern. "This year prices are so high that I don't feel like buying," said Shanti Mahadevan, a 38-year-old woman in Chennai.
But, the temptation of gold lingers in others. "I would want to buy at least one gram or even half a gram," said P. Meenakshi, a 54-year-old woman in Chennai.
Gold prices reached their all-time highs in the local market last week with the 0.999 purity gold quoted at 9,560 rupees for 10 grams on April 20, a jump of nearly 54 percent over the year.
On Thursday, it sold at 9,450 rupees in the Mumbai spot market, up 125 rupees over the previous day.
Meanwhile, the industry continues its vigorous promotion of Akshaya Trithiai to take it to other parts of the country. A Mumbai jeweller said he expected strong sales on April 30.
"Coins of all denominations ranging from 1 to 100 grams would be in demand," said Trimurti Zaveri, partner in Tribhovandas Bhimji Zaveri.
posted by InCar Group Press Room at 11:53
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