Gold, which has traditionally been India’s go-to asset, lost its sheen on Akshaya Tritiya, as prices have risen over 30% in the past one year. Sales estimates vary – some jewellers said volumes plummeted 30% on Wednesday while others pegged it at 15% lower than the Akshaya Tritiya in 2024. In value terms, the consensus estimate is an average 10% increase.
Prithviraj Kothari, president, Indian Bullion and Jewellers Association, puts the fall at over 30% compared to last year. He, however, added that some traction is expected later in the day as the summer heat reduces.
Traders pointed out that exchange of old jewellery for new ones has picked up sharply this year both during the marriage season and Akshaya Tritiya. Over half the sales are taking this route as this helps consumers realise full prices of old gold due to hallmarking. The share was around 30% just two years ago.
Saurabh Gadgil, chairman and managing director, PNG Jewellers, said, “Nearly 50% of purchases are being financed through old gold (exchange of jewellery), allowing customers to manage their budgets smartly without compromising their festive or wedding needs. While volume growth may see a marginal dip of 8-9%, value-wise, we expect to be up by 20-25%.”
Another trend is the spike in sales of studded jewellery. Colin Shah, MD, Kama Jewellery, said, people are investing heavily in gold coins, which is understandable considering the surge in prices. Alongside, the sale of studded jewellery up to `2 lakh has witnessed a spike in demand this season.
Gold imports in March were estimated at 60 tonne in anticipation of rising demand on Akshaya Tritiya and marriage season. But subdued sales have resulted in over 50 tonne inventory. Imports in April so far have been estimated at a little over 30 tonne and spot gold market is at 2% discount. However, even this has not helped much to revive the gold demand. This was confirmed by Gemological Science International, a diamond and jewellery certifying agency.
Ramit Kapur, MD, GSI India, said though diamond jewellery remains popular in the studded category, the company has been seeing growing consumer interest in coloured stone and classic jewellery with rose cut diamonds. “Certification data from our labs shows a sharp rise in submissions for these categories, signalling a shift in buyer preferences toward more expressive and personalised choices”. The share of studded jewellery in the demand mix has grown over 15% compared to previous year, indicating that consumers are looking beyond the conventional and embracing individuality even in festive purchases, he said.
Low-ticket diamonds/jewellery sales have also seen traction as they can be bought against cash payment. Rajesh Rokde, chairman, All India Gem and Jewellery Domestic Council (GJC) said, the recent gold price correction from a high of `99,500 per 10 g to `95,000 has helped some buying. According to him, there are mainly two types of customers — those purchasing in the `50,000 to `5 lakh range, drawn to the festive rush, and high-value buyers investing `10-15 lakh who plan and book their selections days in advance to buy during the muhurat.