Will Rising Gold Prices Affect Akshaya Tritiya Sales? How Jewellers Are Adapting

Gold has always held a special place in Indian culture, especially during auspicious occasions like Akshaya Tritiya. As this important festival approaches on April 30, jewellers across India are preparing for the traditional surge in gold purchases – but with gold prices reaching record highs of nearly Rs 1 lakh per 10 grams, many are wondering how consumers will respond.

Gold Prices at Historic Heights

The gold market is currently experiencing unprecedented price levels, with rates hovering around Rs 95,000 per 10 grams on the MCX (Multi Commodity Exchange). International prices are approaching $3,330 an ounce, representing a remarkable 25% increase since January alone.

Despite these steep prices, industry experts remain cautiously optimistic about sales during this festive period.

How Jewellers Are Responding to High Prices

To maintain consumer interest despite the price challenge, jewellers are implementing several strategies:

1. Focusing on lightweight designs – Creating ornaments that use less gold but maintain visual appeal
2. Offering diverse product ranges – Providing options to suit different budgets
3. Promoting innovative designs – Balancing modern styles with traditional favorites
4. Highlighting gold’s investment value – Emphasizing long-term security in uncertain times

What Industry Leaders Are Saying

Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council (GJC), believes that while high prices might affect purchase volumes, the cultural significance of buying gold during Akshaya Tritiya will still drive demand, particularly for lighter items.

Avinash Gupta, GJC’s vice-chairman, suggests volume demand might remain steady or decrease by around 10% compared to last year. However, he emphasizes that gold’s status as a reliable asset continues to attract buyers.

Beyond Traditional Jewellery

The market is seeing interest across various gold investment formats:

– Traditional jewellery
– Gold coins and bars
– Gold ETFs (Exchange Traded Funds)
– Digital gold platforms

Saurabh Gadgil of PNG Jewellers notes that while overall volume has been under pressure due to rising prices, the coincidence of Akshaya Tritiya with wedding season could still drive strong sales, particularly for gold bars and coins as investment options.

Why Akshaya Tritiya Matters

Akshaya Tritiya holds deep cultural significance in India. Purchases made on this day are believed to bring prosperity and good fortune. The word “Akshaya” means “never diminishing,” which aligns perfectly with gold’s enduring value proposition.

For many families, this festival represents an annual opportunity to invest in gold regardless of market conditions, maintaining a tradition that spans generations.

Looking Ahead

The next week leading up to Akshaya Tritiya will be crucial in determining the actual sales momentum. While high prices present challenges, the combination of cultural significance, wedding season demand, and gold’s perceived safety as an investment could still result in healthy sales figures.

Industry analysts will be watching closely to see how consumers balance budget constraints against tradition during this important gold-buying festival.