Gold Nears ₹1 Lakh, But Akshaya Tritiya Demand Set to Shine Bright with ₹16,000 Crore Festive Surge
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Despite gold prices edging close to the ₹1 lakh mark per 10 grams, India&rsquo;s bullion and automobile markets are poised for a robust surge in consumer activity on Akshaya Tritiya, with traders forecasting total sales to touch ₹16,000 crore across segments.
Traditionally considered an auspicious occasion for asset accumulation, Akshaya Tritiya &mdash; falling on April 30 this year &mdash; continues to command deep cultural and economic significance, especially among Indian households. The Confederation of All India Traders (CAIT) projects strong sales momentum, underpinned by enduring consumer faith and seasonal demand patterns.
Pankaj Arora, President of the All India Jewellers and Goldsmith Federation, estimates gold sales may cross 12 tonnes, translating to nearly ₹12,000 crore in value. &ldquo;Despite record-high gold prices, demand remains resilient, driven by sentiment and symbolic value attached to the day. Many Indians believe gold bought on Akshaya Tritiya brings lasting prosperity,&rdquo; he noted.
Silver demand, too, is expected to remain buoyant, with projected sales of 400 tonnes, amounting to ₹4,000 crore. Combined, the jewellery sector alone could clock business worth ₹16,000 crore this season &mdash; a strong performance amid prevailing price volatility.
Price dynamics have undoubtedly shifted. In 2023, gold was retailing around ₹73,500 per 10 grams, but this year it has breached the psychological ₹1 lakh barrier, fueled by global economic uncertainty, higher crude oil prices, rupee depreciation, and geopolitical instability. Silver has followed suit, spiking from ₹86,000 per kilogram last year to ₹1,00,000.
Yet, as Arora points out, price resistance is being partially offset by investor appetite for safe-haven assets. &ldquo;There&rsquo;s increasing financialisation of gold as a security hedge. Even if some retail customers delay purchases, institutional and investment-driven demand is supporting overall volumes,&rdquo; he explained.
Vehicle dealerships, particularly in urban centers like Ahmedabad, are also optimistic. A 15% year-on-year rise in automobile sales is expected, spurred by the auspicious timing of the festival. &ldquo;Consumers are defying macroeconomic caution to align major purchases &mdash; cars, homes, even white goods &mdash; with Akshaya Tritiya,&rdquo; said a senior automobile dealer in Gujarat.
Wedding-related demand is another stabilising factor. According to CAIT President B.C. Bhartia, traditional wedding purchases of gold and silver remain largely unaffected by price hikes. &ldquo;Cultural imperatives continue to outweigh short-term pricing pressure. Jewellers have also introduced innovative discounts and zero-making-charge schemes to support volumes,&rdquo; he said.
To safeguard consumers, trade associations are urging buyers to insist on BIS hallmark certification and invoices. &ldquo;We&rsquo;re also promoting ethical buying practices and encouraging people to shop only from reputed jewellers,&rdquo; Bhartia added.
In essence, while gold may be glittering at historic highs, the enduring symbolism of Akshaya Tritiya is expected to uphold India's festive economy &mdash; with tradition, belief, and seasonal tailwinds outweighing inflationary pressures.

Gold and jewellery sale to surge on Akshaya Tritaya day

Festive sentiment to drive gold sales worth ₹12,000 crore despite historic price highs

Indians to Buy 12 Tonne Gold on Akshaya Tritiya

Festive sentiment to drive gold sales worth ₹12,000 crore despite historic price highs

April 29, 2025 | 18:49 IST