High gold prices dim Akshaya Tritiya sales: Volume likely down by 30%, but value sales expected to rise 15-25%

Business Mayor

01-05-2025

Kolkata: Soaring gold prices dampened festive buying this Akshaya Tritiya, with preliminary estimates indicating that volume sales may have declined by about 30% compared to last year, jewellers said. In value terms, however, sales may be up 15-20%, they added.
Total gold sales in the country on Wednesday are expected to reach around 17.5-18 tonnes, down from 25 tonnes on last year's Akshaya Tritiya, according to the India Bullion & Jewellers Association (IBJA).
Akshaya Tritiya, an auspicious day in the Hindu and Jain calendars, is traditionally associated with buying gold and other precious metals, believed to bring prosperity and good fortune.
'Report trickling in from different parts of the country indicates that the demand remained muted in most parts of the country except South India,' said Surendra Mehta, national secretary of IBJA. 'People have bought smaller denominations of gold coins to keep the tradition of gold buying on Akshaya Tritiya. Volume demand is down by 30% compared to last year,' he said.
Gold price on Wednesday was hovering around ₹95,689 per 10 grams in the physical market. At the retail end, the price was ₹98,469 per 10 gm with a 3% goods and services tax (GST).
If we compare the gold price with last year's Akshaya Tritiya, prices have surged by 31%, Mehta said.
Silver demand, meanwhile, remained subdued on Wednesday despite its price having dropped 16% since the start of 2025.
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Gold prices have surged by close to 25% during the same period.
South India-which accounts for more than 40% of the 800-850 tonnes of annual gold consumption in the country-saw comparatively better demand on Wednesday.
'Plain gold jewellery sales have gone up by 15% on Akshaya Tritiya day in volume terms compared to last year,' said Baby George, chief executive of Thrissur-headquartered jewellery chain Joyalukkas. 'Diamond-studded jewellery has gone up by 25% by value, compared to last year. Our overall sales are up by 30% this Akshaya Tritiya as compared to last year.'
Jewellers said gold coins and studded jewellery drove demand on Akshaya Tritiya.
'Young buyers are opting for daily-wear lightweight jewellery,' said Colin Shah, managing director of Mumbai-based Kama Jewelry. 'Overall, there's a rise of approximately 10-15% in value terms as compared to last year. Volume was, however, down 15-20% on Wednesday.'