India sees brisk gold buying on Akshaya Tritiya despite price surge, industry sees 35% value jump

New Delhi: Gold and silver buying in India -- the world's largest gold consumer -- kicked off positively on Wednesday's auspicious Akshaya Tritiya festival despite high prices, with jewellers' body GJC projecting gold sales to jump 35 per cent in value terms over the last year.

Consumer footfalls were higher in south India during the first half of the day and were expected to increase in Maharashtra and northern states later due to extreme weather conditions.

Gold prices are trading between Rs 99,500 and Rs 99,900 per 10 grams across different parts of the country, 37.6 per cent higher than Rs 72,300 on Akshaya Tritiya in 2024.

Consumers who had hesitated to buy gold at elevated prices are now purchasing as prices have stabilized from peak levels, All India Gem and Jewellery Domestic Council (GJC) Chairman Rajesh Rokede told PTI.

"We expect gold sale to remain steady at last year's level of 20 tonnes. However, in value terms, we see 35 per cent increase in gold sale today," he said.

Buying precious metal on Akshaya Tritiya is a tradition widely followed in south India that has gradually spread across the country with increased awareness.

Rokede noted that even consumers aged 25-40 years are buying gold and silver, an emerging trend amid sharp rises in precious metal rates. Consumers are purchasing jewellery, coins, and bars based on necessity and budget.

"Affordability has been impacted due to rise in gold prices. However, there is strong buying sentiment due to Akshaya Tritiya. Consumers will buy," said World Gold Council India CEO Sachin Jain.

PNG Jewellers Chairman and Managing Director Saurabh Gadgil said consumer sentiment remains upbeat despite record-high gold prices, with steady interest in gold, diamond and silver jewellery.

Nearly 50 per cent of purchases are being financed through old gold exchanges, allowing customers to manage budgets without compromising on festive or wedding needs, he added.

"While volume growth may see a marginal dip of 8-9 per cent value-wise, we expect to be up by 20-25 per cent, which is a healthy sign of market resilience," Gadgil said.

GSI India Managing Director Ramit Kapur noted an uptick in studded jewellery across key Indian markets, while Aukera CEO Lisa Mukhedkar highlighted the growing importance of lab-grown diamonds during this year's festival.

All India Jewellers and Goldsmith Federation President Pankaj Arora projected sales of about 12 tonnes of gold worth nearly Rs 12,000 crore and about 400 tonnes of silver worth Rs 4,000 crore, totalling an estimated Rs 16,000 crore in business.

Experts said gold demand has not declined in the last three years despite the yellow metal reaching new peaks. India imports 700-800 tonnes of gold annually.