Tuesday is not the most auspicious day for most Indians to buy gold. Barring this day, Saturday and a few other days, Indians lap up gold almost 350+ days a year. But come Akshaya Thrithiya and Dhanteras, the sales volume of gold & jewellery retailers zooms past beyond cognisable levels. The emotions around shopping for precious & valuable items on this day is perhaps the highest ever during the year. 2020 and 2021 were exceptions. In May 2020, the entire country was under lockdown due to which the shutters of all gold retail shops were shut. The overall sentiment wasn’t too good and so were the people’s health. 2021 was somewhat better with most Indians accepting the reality that is Covid-19 and it’s after effects. In fact, the summer of 2021 which coincided with the second wave was a harsh reality of where the pandemic had led us.
But 3 May 2022, a Tuesday was quite different. Across India, jewellery retailers opened their shutters from 6am onwards, just like any other year in the past. It was the most looked after “Akshaya Thrithiya” event after 2 years of drubbing. Eager customers started thronging the stores to buy as much they could – from small portions of mini / laced gold jewellery and 1gm coins all the way up to ornamental and temple designs weighing several sovereigns. An estimated sale of Rs. 15,000 crores was accrued on this day, according to Mr. Pankaj Arora, National President, All India Jewellers and Goldsmith Federation.
Several retailers said they were satisfied with the outcome and the day’s end was worth the wait. Many shop owners said the sales this year was higher than 2019 levels, a benchmark that most retailers across India across formats have started comparing. At an approx. Rs. 48,300 per 10 gm incl taxes, the price of gold was higher than 2019 levels when it was trading at Rs. 35,000/10 gms approx., so it made more sense for consumers to buy more.
Akshaya Thrithiya sales, largely and Dhanteras, which is mostly focussed in the North & Western markets of India, are indicative of the economy’s health. Gold continues to remain the holy grail of savings for most Indians, especially the aspirational middle class and the working class. It was quite evident that lakhs of Indian families dug up their savings in the yellow metal to overcome the financial woes for the past 24 months – from paying school fees to sending kids abroad, from managing job loss crises all the way up to repaying deferred EMIs. When people buy more gold, it is also a signal that 1) there is more cash on hand than required, 2) people are preparing well for the future. AT2022 made the picture clearer.
On one side, the country and the countrymen have seen the worst in their lifetimes – most of whom were born much after the Indian Independence struggle. And the last 2 years has taught how to build resilience, how to forecast their monies and cash flows for the future and be ready for any new challenges. On the other hand, there has been economic crises one after the other – the intermittent waves of the pandemic, job losses, deaths of family members, and most recently the Russia-Ukraine face-off, which has sent fuel prices spiralling upwards, so the cost of inflation and many other products go up significantly. Yet, Indians remain positive of a tomorrow towards which they are working harder! AT2022 sales are the proof in the pudding.
As per the Puranas and Itihasas of Sanathana Dharma, the origin of the Hindu religion, whatever good deeds done on Akshaya Thrithiya gets a multifold benefit. The day is usually referred to offer donations and various offerings to the have-nots, so people earn a brownie point from their creator. However, the Marketing geniuses have transformed the narrative in to one, where buying anything on the day will become multifold. Never mind, at least the Retail trade rejoices that day!
