Chennai: With gold prices having gone up 32 per cent from last Akshaya Tritiya, the gold-buying festival on Wednesday will see a 10 per cent drop in sales volumes. Buyers are also warming up to 18-carat gold this Akshaya Tritiya.“Advance bookings received by jewellers indicate that sales volumes of gold could go down by at least 10 per cent this year. However, in terms of sales value, there would still be 20 per cent higher than last year,” said Saiyam Mehra, vice president, GJC.Buyers are also warming up to 18-carat gold jewellery with prices having crossed Rs 1 lakh per 10 gm recently. “This Akshaya Tritiya, buyers who want to purchase gold for an auspicious occasion are ready to compromise on caratage,” said Mehra.The demand for 18-carat gold is more seen in states like Bihar, Uttar Pradesh and Haryana. North Indian cities like Lucknow, Patna and even smaller cities and towns have started selling 18-carat gold. “The price of the same weight jewellery would be around 18 per cent cheaper in 18-carat, which makes it favourite among buyers who do not care about caratage. However, South India is not too keen to buy 18-carat gold as of now. Currently, 18-carat gold accounts for 8-9 per cent of the gold jewellery sold in India. However, in 3 to 4 years, this could go up to 20 per cent,” said Mehra.This caratage is largely preferred for diamond or gemstone-studded jewellery. Plain gold jewellery of 18-carat too is available. Several jewellers have started stocking up 18-carat jewellery, with 22-carat becoming expensive for buyers. These are mostly bought by buyers, including millennials, who want to buy gold for adornment purposes. However, investors prefer gold coins and those buying bridal jewellery still prefer 22 carat gold jewellery. “High prices have changed consumer behaviour, with buyers opting for lighter-weight jewellery and coins, rather than heavy jewellery. Jewellers are responding to high pricing by announcing new collections, discounts on making charges and promoting silver jewellery,” said Prithviraj Kothari, MD of RiddiSiddhi Bullions.
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