While the overall value of trade is expected to rise, the actual quantity of precious metals sold presents a contrasting picture
Despite bullion prices touching unprecedented highs, the Akshya Tritiya is expected to generate business exceeding Rs 20,000 crore in gold and silver, according to the Confederation of All India Traders (Cait).
This marks an increase from last year’s estimated Rs 16,000 crore. Cait National President BC Bhartia emphasised that while the overall value of trade is expected to rise, the actual quantity of precious metals sold presents a contrasting picture.
As per data shared by Pankaj Arora, National President of the All India Jewellers and Goldsmith Federation (AIJGF), an associate organisation of Cait, the projected Rs 16,000 crore gold trade translates into approximately 10,000 kilogram of gold at current prices, the industry body said. Spread across an estimated two to four lakh jewellers nationwide, this results in an average sale of just 25 to 50 gram of gold per jeweller, clearly indicating a sharp decline in volume.
Similarly, the Rs 4,000 crore silver trade is expected to translate into approximately 1,56,800 kilogram of silver, implying an average sale of only 400 to 800 gram per jeweller during the festival. Praveen Khandelwal, Member of Parliament from Chandni Chowk and Secretary General of Cait, stated that Akshaya Tritiya has traditionally been one of India’s most auspicious occasions for purchasing gold, rooted in the belief that investments made on this day ensure lasting prosperity.
“While gold continues to dominate, the nature of purchasing is evolving significantly in response to steep price escalation. These figures underline a critical shift, while the value of business is expanding due to rising prices, actual consumption is contracting. This explains the growing popularity of lightweight jewellery and small denomination coins in the market this year,” Khandelwal added.
The official statement from the industry body pointed out that there is also a noticeable shift towards alternative investment avenues such as digital gold, sovereign gold bonds, and exchange traded funds (ETFs), which offer enhanced liquidity, safety and flexibility amid price volatility.
