Akshaya Tritiya 2024: Gold Sales Dips Due to Election Model Code of Conduct and Price Surge, Claims Trade Body

The Maharashtra unit of the Confederation of All India Traders (CAIT) has claimed that the imposition of the model code of conduct for the Parliamentary elections has severely impacted the overall sales of gold on Akshaya Tritiya across the country.

Shankar Thakkar, General Secretary of CAIT Maharashtra Pradesh and National President of All India Edible Oil Traders Federation, noted the poor demand for gold and silver on the occasion of Akshaya Tritiya. "After Dhanteras, Akshaya Tritiya is the biggest festival across India, including Mumbai, for buying gold and silver products, especially jewellery. However, this year, the market conditions are not favourable," Thakkar stated.

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Attributing the poor demand to the rising prices of gold and silver along with the ongoing Lok Sabha elections, Pankaj Arora, National President of All India Jewelers and Goldsmiths Federation (AIJGF), emphasized the impact of the election code of conduct on sales in the country's bullion market. "Last year, the price of gold was Rs 60,000 per 10 grams, which has now surged to over Rs 72,000, marking a 20 per cent increase. Sales are expected to be only 20% of last year's figures," Arora explained.

Arora also highlighted the increasing demand for lightweight jewellery in response to the escalating prices. “It is estimated that the total sales of 5 tonnes of gold, including bullion coins and jewellery, amount to about 3600 crores, while 200 tonnes of silver represent approximately 1640 crores,” he said.

Nitin Kedia, AIJGF National General Secretary, disclosed that approximately 300 kg of gold worth Rs 216 crores and 1700 kg of silver valued at 14 crores were sold in Mumbai last year. He added that last year, the price of silver was Rs 75,000, which has risen to Rs 83,000 this year.

Kedia further mentioned astrological concerns, suggesting that the unfavourable positioning of Jupiter and Venus might be discouraging customers from making purchases, particularly for events like marriages.

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Thakkar pointed out that the model code of conduct enforced due to the Lok Sabha elections is also impacting the bullion trade, as women typically save throughout the year to buy jewellery on Akshaya Tritiya. However, the restriction on carrying cash exceeding Rs 50,000 has hindered sales. "The ban on cash transfers has instilled fear among customers, deterring them from visiting the market due to the risk of scrutiny. Even 7 grams of gold is not available under 50 thousand due to the high prices," Thakkar lamented.

Kedia emphasized the need for the Election Commission to consider raising the cash transfer limit from 50 thousand in the future, given the anticipated further rise in the prices of precious metals.