Akshaya Tritiya may see Rs 20,000 crore gold and silver trade despite high prices

Akshaya Tritiya is expected to generate over Rs 20,000 crore in gold and silver trade despite rising prices, with consumer behaviour shifting towards lightweight jewellery and alternative investments, even as overall consumption volume shows a decline

New Delhi: Akshaya Tritiya is expected to generate business exceeding Rs 20,000 crore in gold and silver despite rising prices, a notable growth from last year’s estimated Rs 16,000 crore business on the auspicious occasion, the Confederation of All India Traders (CAIT) said on Sunday.

Akshaya Tritiya has traditionally been one of India’s most auspicious occasions for purchasing gold, rooted in the belief that investments made on this day ensure lasting prosperity.

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“While gold continues to dominate, the nature of purchasing is evolving significantly in response to steep price escalation,” said Praveen Khandelwal, Member of Parliament and Secretary General of CAIT.

Gold prices have surged from around Rs 1,00,000 per 10 grams last year to nearly Rs 1.58 lakh this year, while silver has jumped from Rs 85,000 per kg to an unprecedented Rs 2.55 lakh per kg.

According to CAIT, this sharp rise has triggered a fundamental shift in consumer behaviour. Rather than dampening demand, elevated prices are reshaping buying patterns — pushing consumers towards more calculated and value-driven purchases.

BC Bhartia, CAIT National President, said jewellers across the country have responded proactively by redesigning their offerings and marketing strategies.

“There is a clear shift towards lightweight, wearable jewellery, alongside a stronger focus on silver and diamond products. Attractive incentives such as reduced making charges and complimentary gold coins are also helping sustain consumer interest,” he said.

While the overall value of trade is expected to rise, the actual quantity of precious metals sold presents a contrasting picture.

As per data shared by Pankaj Arora, National President of the All India Jewellers and Goldsmith Federation (AIJGF), an associate organisation of CAIT, the projected Rs 16,000 crore gold trade translates into approximately 10,000 kilograms (10 tonnes) of gold at current prices.

Spread across an estimated 2 to 4 lakh jewellers nationwide, this results in an average sale of just 25 to 50 grams of gold per jeweller — clearly indicating a sharp decline in volume.

Similarly, the Rs 4,000 crore silver trade is expected to translate into approximately 1,56,800 kilograms (around 157 tonnes) of silver, implying an average sale of only 400 to 800 grams per jeweller during the festival.

“These figures underline a critical shift — while the value of business is expanding due to rising prices, actual consumption is contracting. This explains the growing popularity of lightweight jewellery and small denomination coins in the market this year,” said Khandelwal.

There is also a noticeable shift towards alternative investment avenues such as digital gold, Sovereign Gold Bonds, and Exchange Traded Funds (ETFs), which offer enhanced liquidity, safety, and flexibility amid price volatility.