Gold purchase during Akshaya Tritiya may be dearer

Gold purchase during Akshaya Tritiya in India may not be all joy. The Indian gold consumer may experience ‘expensive’ gold purchase at this year’s Akshaya Tritiya festival. The festival is a Hindu tradition where buying gold is believes top welcome prosperity, as gold has been looked upon as a symbol of auspiciousness. This year it will be celebrated on April 21st.

The recent situation of weakening Rupee and global unrest of Saudi Arabia's strike on Yemen has re-ignited the investor sentiment towards gold as a safe haven. Gold prices also shot up by Rs 700 per 10 gm in the last 7 days, and the sector anticipates the prices would swell further if the situation continues.

This situation is also coinciding with the government regulation of PAN cards required to be presented by consumers when purchasing over Rs 1 lakh worth of gold, although the government has yet to come out with the notification.

Yet the sector is hoping with optimism that consumers would spend on this festival, as last year gold prices stood at Rs 29,000 per 10 gm and sales did occur. The prices of gold around Monday were at Rs.27,000 per 10 grams.