One of the most auspicious Indian gold-buying festivals may lose its glitter as the rising price of the yellow metal keeps buyers away from jewellers in Bahrain.

The Akshaya Tritiya festival is celebrated around the world today and tomorrow.

However, the usual rush to jewellery outlets to buy gold ornaments is not expected as experts predict a significant drop in gold sales owing to the recent rise in prices.

The festival is one of the most auspicious days of the year to buy gold, as Indians believe they can get lasting prosperity by buying the precious metal on the day. It is also considered ideal for a new beginning and investment.

Indians are some of the world's largest consumers of gold jewellery and make up the largest expatriate community in Bahrain with around 270,000.

However, gold prices are on an upward rally nearing its lifetime high of $1,250 (BD471) per ounce.

Bahrain Chamber of Commerce and Industry's (BCCI) Gold Committee member Mohammed Hussain Malim said though the number of people marking the festival was growing annually, there would be a drop in sales.

'Year after year, belief in this festival is spreading,' he told our sister newspaper Gulf Daily News (GDN).

'The festival was only introduced a few years ago in north India and now it is being celebrated in a big way even in the south.

'It was an excellent business idea introduced by some jewellers. People believe in it so much that they even borrow money to buy gold on this day.

'Though I don't think recession may have affected their purchasing power much, the ever-increasing price of the metal will decrease the quantity of gold they purchase.

'The price of one gramme of gold is around BD13 now, compared to BD6 four years ago.'

One jeweller said he was expecting a fall in demand owing to higher prices.

'I believe that the demand for gold this Akshaya Tritiya will fall compared to what it was last year,' said the businessman, who asked to remain anonymous.

'Prices are so high that they discourage customers from buying even a small amount of gold.

'It is difficult to say how much the sale will be but it will be difficult to sell much gold on the auspicious day if the prices continue to rise.'

Damas Jewellery regional manager Gafoor Mohammed said people's spending capacity had come down due to the high prices and the global recession. 'We are still expecting the sales to be much higher than the rest of the year,' he said.

'Many people will buy gold, but they will compromise on the quantity.'

Many Bahrain-based Indians believe buying gold today and tomorrow will increase their good fortune.

'I believe in the concept of Akshaya Tritiya because it has brought prosperity for me,' said media executive Sushma Athilat.

'Whenever I have bought gold on this day I have continuously bought gold the entire year.'

However, others suggested the rush to buy gold on Akshaya Trithiya was merely hype created by the media.

'I don't believe there's anything auspicious about this day,' said bank employee Rincy Roy.

'It's just a superstition created by people in the jewellery business to increase their sales.'

Indian father-of-two Mahesh Prithviraj said modern retailers were using the festival to exploit the materialistic urge in people.

'Thanks to the vigorous campaign conducted by banks, jewellery shops and financial institutions, Akshaya Tritiya has gained prominence,' said the engineer.

'We Indians will believe in anything, especially if it is associated with religion, and businesses know how to exploit this weakness.'-TradeArabia News Service