Notwithstanding the rising gold price, the demand for the yellow metal was up for Akshaya Tritiya, according to jewellers. 

Kumar Jain from Indian Bullion and Jewellers Association (IBJA) said, “Despite the high prices, people are buying gold right now because they think it will be of good use to them. The next auspicious beginning that arises is Dussehra, which is months away, and hence people are purchasing more on this occasion.”

This comes even as the gold prices have recently reached historic highs of ₹73,000 per 10 grams in India. COMEX prices have crossed $2,300 per ounce

Suvankar Sen, MD and CEO, Senco Gold and Diamonds said, “We have seen a lot of customers coming and buying wedding jewellery, for the weddings that are either in the summer months or end of the year, expecting that the prices will go up. Half gram and 1 gram Gold Beans have had very enthusiastic responses from across ages and we have fallen short of supply, online and offline.”

The demand for yellow metal was also seen on online platforms including Swiggy. Phani Kishan A, the CEO of SwiggyInstamart tweeted,“ Akshaya Tritiya sales of coins on SwiggyInstamart have surged by over 500 per cent compared to our Dhanteras. This is something truly amazing.”

But the high price for gold has given a boost to diamond jewellers as customers look for alternatives. Amit Pratihari, Vice-President, De Beers Forevermark, said “‘We are observing a significant increase in customer visits. Our partner retailers are reporting positive outcome, especially in South India where Akshaya Tritiya holds great cultural significance. Furthermore, there’s a notable trend towards purchasing items that carry intrinsic value, making natural diamonds particularly desirable.” 

Future outlook

Gold prices have witnessed a sharp rally in the month of March 2024 with prices hitting all-time highs in domestic and international markets. Experts said that the prices are expected to rise as investors consider gold as a safe haven. “The rising prices are a great opportunity for the investors,” says Jain from  IBJA. The expected rate of gold is said to be ₹80,000/10 gms by Diwali, according to the IBJA spokesperson.

Rishabh Goel, MD, Tailwind Financial Services, further elaborated on the opportunity to invest this Akshaya Tritiya, saying, “When it comes to investing, investors have several options to consider. One popular option is investing in mutual funds, which pool money from investors to create a diversified portfolio managed by professionals. This can be a great way to access a diversified investment portfolio without needing to actively manage it yourself.”

(Dharna is interning with businessline)