Gold Bars and Coins Boosted Total Sales in May
Gold | 2022-06-03 13:17:03
This is evident from the fact that nearly 300 kilograms of gold were traded in Gujarat in a single day, in connection with Akshaya Tritiya, IBJA noted.
By Paul Ploumis
SEATTLE (Scrap Monster): According to the Indian Bullion and Jewellers’ Association (IBJA), Muhurat purchases on Akshaya Tritiya and pent-up demand from deferred weddings have boosted the demand for gold during the month of May this year. It must be noted that a third wave of Covid-19 pandemic in the country had caused a lot of weddings originally scheduled for January-February to be deferred to April-May.
The demand for the yellow metal had dipped significantly in March and April, owing to high inflation, high gold prices and weak consumer sentiment. However, the demand recorded tremendous improvement in May. The demand for the month stood at 5.11 MT, which was almost five times the combined demand during March and April. The volatility among other asset classes saw investors turning to gold. This is evident from the fact that nearly 300 kilograms of gold were traded in Gujarat in a single day, in connection with Akshaya Tritiya, IBJA noted.
Haresh Acharya, Director, IBJA noted that gold bars and coins accounted for nearly 60% of the total gold sales on Akshaya Tritiya. This indicates the investment appeal of gold. The investor sentiment towards gold has remained steady over the past month, amidst high volatility among other major asset classes, he added.
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