Gold Silver Reports (GSR) — Gold Demand on Akshaya Tritiya 2018 — First off, “investing in gold is not the same as buying gold for consumption. If you plan to buy gold for your daughter’s wedding or to gift your wife, that shouldn’t be counted as investment. Jewelry has emotional value and people generally don’t wish to sell it except in times of extreme financial distress. In addition, making charges during purchase and breaking charges during sale make jewelry unattractive as a form of investment,”
With several parts of the country facing shortage of cash, jewellers fear that this would affect purchase of gold or jewelry by rural folks on Akshaya Tritiya today. Sale in rural areas is likely to be most affected as this is where the cash crisis has hit hardest and people rely on mostly cash to make the purchase.
“Cash shortage can have a severe impact on demand of gold and jewellry from rural areas. This section of society is still not comfortable with digital transactions. They rely only on cash as it is tangible. The rumours that banks will not return the deposits of customers has also made people worried whether they will get their cash or not,” said Chinubhai Shah, president of Shree Choksi Mahajan — Manekchauk.
Is it a good time to invest in gold?
Gold is back as the safe haven option in the minds of investors on the backdrop of the recent spate of volatility in the equity markets. However, does the performance of gold and gold-backed financial products in the recent past back this belief? Before we look at the numbers, here is the fundamental reason why gold is not a great idea as a pure investment option.
“As an asset, gold does not have earning power unlike other assets like equities, fixed deposits, or government bonds. Gold is an idle asset as it does not grow, compound, or provide any form of income. Any growth in the value of gold depends on the expectation that its demand will increase in the future. Hence, people invest in gold as they believe that they will be able to sell it at a higher price in the future,” informs Pandit.
State Bank of india (SBI Bank) offer on gold jewellery on Akshaya Tritiya using its debit cards:
This Akshaya Tritiya, we wish you and your family joy and prosperity. We have some great #discounts and #cashback on #jewellery brands just for you! Shop with your SBI Debit Card and avail the benefits. Read the T&C here: https://t.co/3rlLTi2xaN#SBI #HappyAkshayaTritiya pic.twitter.com/uwvIaCOjTC
— State Bank of India (@TheOfficialSBI) April 18, 2018
1) ✅ Under the scheme aimed at Akshaya Tritiya 2018 festival, SBI is offering discount on gold as well as diamond jewellery, making charges and precious stones, among others, according to the bank’s website.
2) ✅ The offer is valid till April 18, 2018 in select stores and can be availed “only with your SBI Debit Cards”, SBI noted.
3) ✅ Dubbed as “an offer as previous as gold” by SBI, the scheme covers brands including Reliance Jewels, a jewellery retail chain which is part of Reliance Retail, the retail arm of Reliance Industries.
4) ✅ The offer can be availed by an SBI debit card holder – Visa, MasterCard or Maestro – by swipingthe SBI Debit Card at an eligible merchant outlet, according to the bank.
5) ✅ The offer cannot be clubbed with any other sale, scheme or discount running at the store and is not valid on purchase of solitaires, bullion, coins (except for Suvarna Jewels where the offer is on Gold Coin), gold bars or silver coins, SBI mentioned.
SBI also mentioned a list of stores along with their addresses where the offer can be availed. (For more details, click here)
SBI’s debit card offer on purchase of jewellery opened on April 7, days ahead of Akshaya Tritiya. Every year, many jewellers roll out promotional schemes ahead of Akshaya Tritiya to attract buyers, say experts.
