This Akshaya Tritiya, India’s gold and silver markets are headed for bumper buying, with total trade likely to cross Rs 20,000 crore, even as record-high prices are reshaping buying patterns. The estimate, shared by the Confederation of All India Traders (CAIT), is higher than last year’s figure of Rs 16,000 crore, indicating an increase in value despite a sharp rise in bullion rates.Prices of the yellow metal have risen sharply in the last year, from Rs 1,00,000 per 10 gram to Rs 1.58 lakh. Meanwhile, there has been a sharp rise in silver and it has increased from Rs 85,000 per kg to Rs 2.55 lakh per kg. According to CAIT, this rapid growth has not weakened demand, but has led consumers to make more deliberate and value-oriented purchases.Praveen Khandelwal, Member of Parliament from Chandni Chowk and general secretary of CAIT, told ANI, “Akshaya Tritiya has traditionally been one of India’s most auspicious occasions for gold purchases… While gold continues to dominate, the nature of purchasing is changing significantly in response to the steep price rise.”Commenting on customer preference, CAIT National President BC Bhartia said, “There has been a clear shift towards lightweight, wearable jewelery along with a greater focus on silver and diamond products. Lower making charges and attractive incentives like complimentary gold coins are also helping to retain consumer interest.”Despite the increase in overall trade value, the volume of metals being sold tells a different story. Pankaj Arora, national president of the All India Jewelers and Goldsmiths Federation (AIJGF), an affiliate of CAIT, said the estimated gold trade worth Rs 16,000 crore is about 10,000 kg (10 tonnes) at current rates. The value, spread across an estimated 2 to 4 lakh jewellers, translates to an average sale of only 25 to 50 grams per jeweller, “clearly indicating a sharp decline in volumes”.Meanwhile, the estimated Rs 4,000 crore trade for silver is equivalent to about 1,56,800 kg (157 tonnes), resulting in average sales per jeweler of about 400 to 800 grams during the festive period. “These figures highlight an important shift: while the value of trade is rising due to rising prices, real consumption is declining,” Khandelwal said.This gap between value and quantity is also reshaping consumers’ shopping patterns, with smaller items and lighter jewelery gaining popularity. At the same time, jewelers are facing challenges due to price fluctuations, especially when it comes to managing inventory.Nevertheless, festive demand remains stable, with markets seeing good footfall. “Consumers are now taking a more cautious and pragmatic approach, balancing traditional beliefs with financial discipline,” Khandelwal said.Also, 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, security and flexibility when prices fluctuate.CAIT and AIJGF have urged jewelers to adhere to mandatory hallmarking standards, including HUID certification, and advised buyers to verify the purity and authenticity of their purchases.
