Akshaya Tritiya Gold-Silver Sales: High Prices May Temper Buying

New Delhi: The domestic jewelry market is likely to witness a mixed response in the purchase of gold and silver on the auspicious occasion of Akshaya Tritiya, the Confederation of All India Traders (CAIT) informed on Tuesday. A sharp surge in the prices of precious metals is anticipated.

According to a PTI report, Pankaj Arora, President of the All India Gem and Jewellery Trade Federation (AIGJTF), estimates a business of ₹16,000 crore on Akshaya Tritiya, the Hindu festival being celebrated on April 30th.

As per the report, currently, gold prices have soared to ₹1 lakh per 10 grams, a significant jump from ₹73,500 on Akshaya Tritiya last year. Similarly, silver prices have risen to ₹1,00,000 per kilogram, up from ₹86,000 per kilogram in 2023.

Pankaj Arora of AIGJTF stated that while Akshaya Tritiya typically sees a surge in buying, high prices have impacted consumer demand this year. Arora expects the sale of approximately 12 tonnes of gold worth ₹12,000 crore and about 400 tonnes of silver worth ₹4,000 crore on Akshaya Tritiya this year, resulting in a total estimated turnover of ₹16,000 crore. He noted that the high prices of gold and silver are expected to lead to a slight slowdown in customer purchases.

Global economic uncertainty, rising crude oil prices, a weakening Indian Rupee against the dollar, and increasing investor interest in gold as a safe haven have all contributed to the surge in gold and silver prices. Additionally, geopolitical tensions and fluctuating interest rates have also played a role in the price hike.

CAIT’s National President B.C. Bhartia stated that the ongoing wedding season in India has prevented a complete slump in jewelry demand. Jewelers have also introduced attractive offers to lure customers.

Business leaders have urged customers to only purchase BIS-hallmarked and certified jewelry and to always insist on a proper bill. They have also advised buyers to transact only with trusted jewelers to ensure pricing transparency.