Chennai: Akshaya Tritiya, the annual festival when jewellery sales reach their absolute peak, falls on Sunday, April 19. Jewellery stores across the region are expected to be teeming with crowds. However, domestic demand for gold is rising, and after a continuous decline over the past few weeks, gold prices have risen for two consecutive days. In Chennai alone, the price of 22-carat ornamental gold has increased by ₹360 per gram and ₹2,880 per sovereign (8 grams) over the last two days.
What is Gold pre-booking?
If you choose to pre-book gold at today’s prevailing rate by paying an advance amount, you need not worry about any subsequent price hikes—regardless of how much the price of gold may have appreciated by the time Akshaya Tritiya arrives for your actual purchase. By “locking in” the price at the current day’s rate during pre-booking, you effectively insulate yourself from any price increases that may occur from the following day onward.
Benefits of pre-booking
Some retailers offer incentives such as cashback, various gifts, and additional discounts to customers who choose to pre-book their gold. Typically, when pre-booking gold, you are required to pay an advance amount ranging from 10% to 20% of the total value. Some companies even offer a special concession: if the price of gold happens to drop on the actual day of the event, customers are allowed to purchase it at that lower rate.
By pre-booking in advance, you can avoid getting caught in the massive crowds typically seen on Akshaya Tritiya. Pre-booking allows you the comfort and leisure to select your jewellery at your own pace. Some companies also offer additional incentives, such as free silver coins, to those who pre-book their gold purchases.
Expert views
Chainani, an analyst notes that gold prices are likely to rise by up to 3% over the coming days; consequently, he suggests that pre-booking gold is a prudent decision. Kothari, Chairman of Preeti Siddhi Bullions, observes that given the current market climate, there is a distinct possibility that prices will trend upward.
Precautions to take
When pre-booking, you must ensure that you are booking with a BIS-certified jewellery retailer and that you are purchasing Hallmarked jewellery. It is advisable to pay close attention to the specific offers applicable to pre-booked jewellery—specifically how making charges, wastage charges, and discounts are calculated. You should carefully read and understand the Terms & Conditions before proceeding with a reservation, and familiarize yourself with the specific conditions that would apply if you decide to cancel your booking.