Akshaya Tritiya Sees 30% Drop in Gold Volume Amid Price Surge
Akshaya Tritiya sees 30% volume drop in gold buying amid price spike
The Economic TimesImage: The Economic Times
Gold demand during Akshaya Tritiya fell by 30% in volume this year as prices surged nearly 60% compared to last year. Despite this, value demand increased by 20-25% as buyers opted for lighter jewellery and small coins. The festival is considered auspicious for purchasing gold in India.
- 01Gold demand volume dropped by 30% this Akshaya Tritiya due to high prices.
- 02Value demand increased by 20-25% as consumers shifted to lighter jewellery.
- 03Gold prices reached ₹1,51,650 per 10 grams, including 3% GST.
- 04South India accounted for 40% of national gold sales during the festival.
- 05Retailers reported that 40-50% of sales came from old gold exchanges.
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This year's Akshaya Tritiya saw a significant 30% drop in gold demand volume compared to last year, attributed to a nearly 60% price increase. Gold was priced at ₹1,51,650 per 10 grams, leading buyers to opt for lighter jewellery and smaller coins. Despite the volume drop, value demand rose by 20-25%, indicating a shift in purchasing behavior. Buyers, particularly millennials, preferred solitaires in the ₹75,000-2.5 lakh range. Retailers like CaratLane and Kalyan Jewellers noted that demand remains strong, especially for design-led pieces. The festival, which is one of the most auspicious days for purchasing gold in India, saw South India leading sales with 40% of the national total. Additionally, 40-50% of sales came from exchanges of old gold, reflecting a trend towards upgrading existing jewellery. Retailers are optimistic about demand momentum continuing due to the two-day Muhurat this year.
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The drop in gold demand may affect local jewellers' revenues and influence pricing strategies, impacting consumers' purchasing decisions.
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