Akshaya Tritiya gold buying: Jewellers roll out offers as 'mixed trend' expected amid sharp price rise

India’s jewellery market is likely to witness a "mixed trend" in gold and silver purchases on Akshaya Tritiya amid surging precious metal prices, the Confederation of All India Traders (CAIT) said on Tuesday.

Despite elevated rates, All India Jewellers and Goldsmith Federation President Pankaj Arora projected business worth ₹16,000 crore during the auspicious occasion.

“Jewellery markets across the country are witnessing mixed trends ahead of Akshaya Tritiya, mainly due to the sharp rise in gold prices in recent weeks,” CAIT said in a statement.

Gold price rise

Gold prices jumped ₹1,050 to ₹99,450 per 10 grams in the national capital on Tuesday, fueled by fresh buying from jewellers and stockists, according to the All India Sarafa Association. Since the end of 2023, prices have climbed by ₹20,500 per 10 grams, a 26% surge.

Silver also surged ₹3,500, the steepest gain in nearly three weeks, to trade near an all-time high of ₹1,02,000 per kg. The metal had closed at ₹98,500 per kg in the previous session.

Akshaya Tritiya, falling on April 30 this year, is considered an auspicious day for buying gold and silver and typically sees a spike in jewellery sales. However, this year, the sharp rally in metal prices has dampened some consumer enthusiasm.

“Typically, Akshaya Tritiya sees a surge in purchases, but this year, elevated prices have affected consumer demand,” PTI quoted Arora as saying.

He predicted gold sales at 12 tonnes worth nearly ₹12,000 crore and silver sales of about 400 tonnes worth ₹4,000 crore on this year’s Akshaya Tritiya.

The price rally has been fueled by global economic uncertainty, rising crude oil prices, depreciation of the Indian rupee, and heightened investor interest in gold as a safe-haven asset.

Jewellers roll out offers

Major jewellery brands, including Tanishq, Senco Gold, MP Jewellers, and PC Chandra Jewellers, have rolled out aggressive promotional offers to offset consumer hesitation.

Tanishq is offering up to 20% off on gold making charges, while Senco Gold has announced a flat ₹350 discount on gold prices and up to 30% off on making charges.

MP Jewellers and PC Chandra Jewellers are also offering discounts of ₹300 and ₹200 per gram, respectively.

CAIT’s National President, B C Bhartia said the ongoing wedding season in India has prevented a complete drop in jewellery demand.

Trade leaders have urged consumers to purchase only BIS hallmarked and certified jewellery and to insist on proper invoicing. They also advised buyers to transact only with trusted jewellers to ensure pricing transparency.