By FXEmpire.com
This Akshya Tritya, jewelers are depending more on the emotional sentiment for gold sales. After Dhanteras, this is the biggest gold buying festival in India. To celebrate the festival and boost sales amid record high gold prices, banks and jewelers alike have various discounts and offers for the consumers.
Their enthusiasm for the gold-buying festival although high, doesn’t come without slight hesitation concerning demand due to high prices for the precious metal.
HDFC Bank is optimistic about gold coin sales and investment in paper gold this season. “During these festivals one sees a lot of off take in terms of gold coins, banks also become aggressive in selling,” a senior official from HDFC Bank told Business Standard.
Gold prices are reigning high due to weak Asian and global equities. Investors are flocking to the safe-haven asset as risk aversion in the face of the ever-deepening Eurozone crisis, analysts comment. Despite this, jewelers and banks are confident about the sale of gold jewelry, paper gold and coins during the festival.
During 2011 Indian households continued to turn to gold as a store of wealth, with gold now accounting for 7% of household savings.
Despite gold touching a two-month high, jewelers are expecting about 15 tonnes of sale of the metal, This is 5% more than sales on last Akshya Tritya.
Click here a current Gold Chart.
Originally posted here
