On Akshaya Tritiya, India’s gold and silver markets are headed for bumper buying, with overall trade likely to cross Rs 20,000 crore even as record prices reshape buying patterns.
The estimate, shared by the Confederation of All India Traders (CAIT), is higher than last year’s Rs 16,000 crore, indicating growth in value despite a sharp rise in bullion prices.Prices of the yellow metal have risen sharply over the past year, moving from Rs 1,00,000 per 10 gram to Rs 1.58 lakh. Meanwhile, silver showed a sharp rise, jumping from Rs 85,000 per kg to Rs 2.55 lakh per kg. According to CAIT, this sharp escalation has not dampened demand, but instead prompted consumers to make more deliberate, value-oriented purchases.“Akshaya Tritiya has traditionally been one of the most auspicious occasions in India to buy gold… While gold is still dominant, the nature of buying is evolving significantly in response to the sharp escalation in prices,” Praveen Khandelwal, Member of Parliament for Chandni Chowk and Secretary General of CAIT, told ANI.Commenting on customer preferences, BC Bhartia, National President, CAIT, emphasized, “There is a clear shift towards lightweight and wearable jewellery, along with a stronger focus on silver and diamond products.
Attractive incentives such as reduced manufacturing fees and free gold coins also help maintain consumer interest.Despite the increase in overall trade value, the amount of metal sold tells a different story. Pankaj Arora, national president of All India Jewelers and Goldsmiths Federation (AIJGF), a member of CAIT, explained that the expected gold trade of Rs 16,000 crore amounts to nearly 10,000 kg (10 tonnes) at current rates.
The value, spread across an estimated 2 to 4 lakh jewelers, translates into an average sales of just 25 to 50 grams per jeweller, “clearly indicating a sharp decline in volume”.Meanwhile for silver, the estimated trade of Rs 4,000 crore equates to around 1,56,800 kg (157 tonnes), resulting in an average turnover of around 400 to 800 grams per jeweler during the festival period. “These numbers underscore a crucial shift: while business value is expanding due to rising prices, actual consumption is contracting,” Khandelwal said.This gap between value and size is also reshaping consumer purchasing patterns, with smaller items and lightweight jewelry gaining popularity. Meanwhile, jewelers face challenges due to price volatility, especially when it comes to inventory management.However, festive demand remains steady, with markets witnessing good footfall. “Consumers are now adopting a more cautious and practical approach, balancing traditional beliefs with financial discipline,” Khandelwal added.At the same time, it is no longer just about physical gold, as consumers are increasingly exploring alternatives such as digital gold, sovereign gold bonds and gold ETFs, attracted by the promise of liquidity, safety and flexibility when prices are volatile.CAIT and AIJGF have urged jewelers to comply with mandatory labeling standards, including HUID certification, and advised buyers to check the purity and authenticity of their purchases.