This Akshaya Tritiya, while the meteoric rise in the prices of the yellow metal had cast its impact on sales, the delay in passing on the interest rate cut by a few banks appears to have forced prospective automobile buyers to postpone buying.
Generally people consider buying gold, automobile and other commodities on the day considering it auspicious. Cashing in on this belief, jewellery outlets and automobile dealers announced many offers, but their tactics seem to have failed in influencing many people.
The price of 24-carat gold in the city market fluctuated around Rs. 29,300 per 10 grams on Tuesday. Compared to last year, sales are down by at least 15 per cent. Gold price is shooting up every year and it is slowly inching away from the reach of the middle and low income groups, said V. Ravichandran, Manager of GRT Jewellers.
“People are buying gold, but the quantity is declining. If a buyer purchased 10 gms gold last year, this time he is purchasing 5 gms,” said Mr. Ravichandran. While a few outlets registered good sales, shops in the traditional markets of Abids, Secunderabad General Bazar etc were disappointed.
Sales have definitely gone down this year and it is the outlet owners who need to be blamed. In a bid to exploit the sentiment, majority of the outlets announced one-week celebrations and poured in offers with hidden charges, but buyers are making limited purchases, said Hari Kishan Gupta, former president of Twin Cities Jewellers Association.
Automobile firms and dealers too were not content with the sales. With many banks yet to announce their interest rate cuts, buyers have delayed deals, said an officer of Maruti Suzuki India Limited’s regional office.
“Despite attractive offers, sales were below our expectations,” he lamented.