by Peter Schiff, Schiff Gold:

Jewelers and dealers in India reported brisk gold sales on Akshaya Tritiya, despite the holiday falling on a workday and extreme heat in some regions of the country.

Akshay Tritiya ranks as one of the four most important days for Hindus. The word Akshay roughly translates to “the never diminishing.” The day is believed to bring good luck and success. It is also considered one of the most auspicious occasions to buy precious metals, including gold.

According to the Economic Times of India, gold sales were up by as much as 25% on Akshay Tritiya, which fell on May 7 this year.

Saurabh Gadgil serves national vice-president of the India Bullion & Jewellers Association. He told the Economic Times he was very positive about Akshay Tritiya sales this year.

Footfalls are good as there is a positive sentiment. Despite being a working day and the sweltering heat, there has been steady stream of people coming in to pick up pre-booked jewelry and also some token items from the morning. But the momentum gathered more steam after office hours and we expect more pick in the volume through the rest of the night.”

Dealers in both northern and southern regions of India reported surging demand.

Kalyan Jewellers chairman TS Kalyanaraman said that wedding sales have been strong this year in general due to stable prices and positive sentiments.

Bullion dealers also reported strong Akshay Tritiya sales. Khanna Gems’ Pankaj Khanna said sales volume rose 20% in offline bullion demand and the company reported over 1,200 transactions for silver and gold coins online.

Indians traditionally buy and hold gold. The yellow metal is interwoven into the country’s marriage ceremonies and cultural rites. Indians also value gold as a store of wealth, especially in poor rural regions. While Americans generally think of gold as a luxury item, many Indians view it as a necessity. In the Asian nation, buying gold is not just for the rich. In fact, a recent survey shows that possessing the yellow metal is a universal phenomenon across all income classes in India.

India ranks second in the world in gold demand behind China.

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