Mrs Premavathy Rajendran knows about the recession, but she still plans to spend over $3,000 on gold jewellery this Akshaya Tritiya.

She justifies it by saying: “Gold is the best form of investment.”

Akshaya Tritiya is the day when Indian Hindus, mainly those from south India, consider it most auspicious to invest in gold as it leads to good luck and eternal success.

It is one of two auspicious days in the year, along with Dhanteras in October, when Indians buy gold.

According to the World Gold Council’s (WGC) recent Gold Survey 2009, gold remains the most secure investment for Indians.

WGC’s managing director Ajay Mitra said that “gold jewellery has been treasured and sought after since the beginning of Indian history and till date bears an extraordinary significance especially during festivals”.

However, the recession has made itself felt. Prices of this “secure investment” have fallen and jewellery stores, while still hoping for the usual hectic crowd, are being realistic about the amount customers will spend.

Singaporean Lalitha Rajan is a firm believer in Akshaya Tritiya, which falls on April 27 this year.

Like most Hindus, especially those who hail from south India, she believes that Akshaya Tritiya – it means never diminishing in Sanskrit – is the most auspicious day to invest in gold and precious stones like diamonds as it will bring good luck and success.

Mrs Rajan therefore tries to buy a piece of jewellery on this day every year. This year is no different, although she is watching her budget.

“Depending on the price of gold, I can spend between $1,000 and $2,000 just buying jewellery for myself. But with the financial situation, this year I might buy just a small thing, just for tradition’s sake,” says the 45-year-old secretary.

Accountant Ratna Mala, who hails from Andhra Pradesh and has been in Singapore for over two years, is a firm believer too. She has not failed to buy gold jewellery on Akshaya Tritiya for the past five years.

“Gold is considered a safe and liquid investment for Indian women. If you need cash right away, you can pawn it,” says Mrs Mala, 40.

No wonder, despite the gloomy economic mood, jewellers in Singapore are bracing themselves for a busy day ahead. Colourful banners, posters and flyers around the Little India jewellery stores are attempting to entice buyers with offers of discounts and special deals.

But all that optimism is streaked with a dose of reality. Some stores tabla! spoke to say that, unlike previous years where people would spend thousands of dollars, they expect the recession to take a bite out of their golden apple this year.

Mr Tridansh Bahadhur Pandey, manager of Chandhini Jewellery in Serangoon Road, is convinced that people will still buy gold on this day due to the belief that it will bring them good luck. They just won’t be spending that much on generating that luck.

“On Akshaya Tritiya, our customer numbers double. This year, I think they might spend a little less and most of them will be trading in their old gold pieces for new ones,” he says.

Another Serangoon Road jeweller, K.G. Jewellers, is also expecting a large crowd. It has already had a sizeable amount of pre-orders from its regular customers. K.G. Jewellers owner V. Pushpalatha is being realistic though. She expects buyers to draw their purse strings a little tighter this year and be more selective in their purchases.

“They might get earrings, bangles or just a necklace rather than the whole set,” she says.

Firma Jewellery’s director S. Parekh thinks the more savvy customers are even monitoring gold prices.

“We had many phone calls from customers checking the prices and looking over the items they want to buy on Monday (April 27),” he tells tabla!.

Last month, gold prices hovered around $45 per gram for 916 (22 carats) and $49 for 24 carats.

As of April 23, the prices had come down to about $43 (22 carats) and $45 (24 carats) respectively. And Mr Parekh thinks customers are hoping that the prices will drop even further.

“Everyone is being prudent, even if some of them are not yet affected by the recession,” he says, adding that customers could opt for gold jewellery that weighs less.

“The heaviest necklace we have here is about 200g. More people might buy necklaces that weigh 50 or 80g.”

Jewellery stores outside the Little India belt have also noticed a drop in gold purchases.

Chip Lee jewellery chain, which has a branch in Yishun that attracts a large local Indian clientele, is one of them.

Ms Jessica Fam, manager of Chip Lee’s Yishun outlet, says her customers are buying less: “They are definitely more careful with their purchases.”

A similar trend has been noticed by On Cheong Jewellery in South Bridge Road. Spokesman Juliana Yeong says its regular customers are still purchasing gold items though in smaller numbers.

“Our customers have been with us across a few generations. Whenever they need to look for jewellery items, they will come in one big family,” she adds.

There is some good news for all these jewellery stores though. Many of the traditional Akshaya Tritiya customers also seem to have a good head for investment.

Teacher Premavathy Rajendran has set aside money for her Akshaya Tritiya gold shopping. In fact, she has already placed an order for a ruby and gold necklace worth $3,000 for her daughter.

“Gold is always a good investment. You can’t go wrong with it,” says the 49-year-old Singaporean.

As for retiree Rukmani Chinnaswami, she will be limiting herself to gold coins this  year.

“I’ve been watching the gold index and if the prices go down, I can buy more,” says the 53-year-old from Coimbatore who has lived in Singapore for 13 years.

“Otherwise I will just buy gold coins and make ornaments for my daughter and granddaughter.”

Looks like believers in Akshaya Tritiya still want the golden luck... they just don’t want to pay its weight in gold.

This article was first published in tabla!