Akshaya Tritiya likely to see low sparkle amid soaring gold prices

With rising prices, many are turning to gold ETFs or stocks, says industry expert
| Photo Credit:
PTI

Although jewellery stores are far from deserted despite the recent surge in gold prices, this Akshaya Tritiya is expected to witness a dip in high-value purchases, with customers opting for lower ticket items.

Jewellery retailers are treading cautiously as gold prices have touched an all-time high of ₹89,300 per 10 grams for 22-carat gold — up nearly 30 per cent from last year.

Take for instance Rekha Sivadarshini (name changed), a teacher from Bengaluru’s Rajajinagar. She shared that she plans to buy only 5 grams of gold this Akshaya Tritiya, as opposed to the usual 10 grams. “If the gold rate drops, I’ll buy more. But now, it’s more about necessity than indulgence. Buying gold as an investment rather than for casual or traditional reasons,” she said.

Change in consumer behaviour

This shift is being echoed across the industry. GIVA founder Ishendra Agarwal noted that consumer behaviour has evolved, jewellery is no longer seen purely as an investment, but more as a fashion accessory. “With rising prices, many are turning to gold ETFs or stocks instead. Others are diverting their spending towards experiences like travel,” he observed.

Reflecting this trend, Titan Company in its Q4FY25 quarterly update reported sluggish demand even for lower-ticket items, leading to single-digit growth in buyers. The company added that studded jewellery saw low double-digit year-on-year growth during the quarter.

Vibha, who is based out of Pune shared that she has reduced how often she buys gold. However, she still purchases small amounts on ‘muhurtas‘ and now looks for designs made in 5 to 6 grams — as it saves money while still offering the joy of wearing gold.”

To support buyers like Vibha, brands like Tanishq are offering schemes to ease the financial burden of buying gold. For example, Tanishq has rolled out initiatives that enabled 2.7 lakh unique wedding buyers, including 1 lakh weddings where brides exchanged old gold — bought from any jeweller — to purchase new jewellery. Additionally, the brand introduced a wide range of lightweight traditional and contemporary designs across categories like neckwear, earrings, chains, and bangles, catering to both daily wear and special occasions, said Arun Narayan, VP – Category, Marketing and Retail, Tanishq, Titan.

While there is a cautious approach in market Sachin Jain Regional CEO India World Gold Council remarked that many consumers are adopting a ‘wait and watch’ approach this year, especially after witnessing 14 historical peaks in gold prices over the past three months. “Demand will likely return to the market in a very strong way once there is more clarity,” he said.

With gold out of reach, other metals sparkle

Interestingly, other metals are gaining momentum. Both GIVA and Titan observed increased interest in silver and solitaire jewellery. According to Titan’s quarterly update, its solitaire segment saw a turnaround, with growth in both buyer base and value. GIVA also reported strong silver jewellery sales — a trend Agarwal links to wage stagnation and rising costs. “With limited salary growth and more spending categories like travel, consumers are becoming more selective about where their money goes,” he added.

(With inputs from bl intern Nethra Sailesh)

Published on April 17, 2025