Increase in gold sales expected due to Indian gold buying festival
Gold has recovered a little over the last week or so after falling in price over the weeks before. Now, a huge increase in gold sales is expected because the Indian gold buying festival that is going to take place today, April 24, 2012.
Known as Akshaya Tritiya, which is considered a day set aside specifically for buying the precious yellow metal has got both consumers and jewelers in a wild state of excitement.
Jewelers are expecting a 25 percent increase in gold business in one single day and consumers are scrambling to make up their minds over the varied discounts on offer.
Everyone wants to get in on the fun, one way or another.
“We have had the three week strike against excise duties levied by the government in the Budget,” said Manish Jha, bullion trader in Mumbai.
“We are leaving no stone unturned to ensure that the footfalls multiply tomorrow and that consumers can avail themselves of the choicest piece of jewelry or gold bar after the famine-like conditions that most have experienced,” he added.
As you can see, most everyone in the region is very excited about the festival.
Not only that, but other investors and collectors around the rest of the world’s markets are also excited about the festival.
After all, a jump in gold sales (this big of a jump at least) should mean great things for gold over the next few days and hopefully for longer than that.
“The consumer mood is upbeat despite the ruling high price. We expect business to soar and hope sales would be around 25% to 30% more than last year,” said the All India Gems and Jewelry Trade Federation chairman, Bachhraj Bamalwa.
We have been waiting for a huge piece of positive news regarding gold, and now we have some.
While there is no way to tell how this gold buying festival will truly affect the longer term outlook of gold, it is probably safe to say that for the next few days gold should see a bump in price.
The sheer amount of the yellow metal that is going to be purchased at the festival should alone be enough to send the price of the yellow metal up to some extent.
How much it will raise prices is anyone’s guess. I doubt it will be anything massive but it will likely be somewhat significant at the least.
That being said, keep an eye on what gold does after the festival. If you can, try and get in on the fun, as there are usually plenty of gold deals to be had during the huge Indian gold buying festival known as Akshaya Tritiya.
The above article is for informational purposes only and is not a solicitation by End the Lie or Goldco Direct. It is the commentator’s opinion only and not intended for investment recommendations, and does not necessarily reflect the views of End the Lie or Goldco Direct. Any references to outside sources are believed to be accurate. Past performance is not a guarantee of future results. All commodities involve risk. Investors should consult their financial adviser before making any investment decisions.