New Delhi: Akshaya Tritiya, a spring festival in India, is an auspicious day for new beginnings, investments, and charity, believed to ensure enduring prosperity. Buying gold is a common practice on this day.

However, consumers refrained from high-value gold purchases on Wednesday, deterred by steep prices of the precious metal. Still, they opted for token purchases such as gold and silver coins as a form of investment, apart from picking up daily wear ornaments, retailers said.

Despite extended store hours, walk-in customers were few, denting volume growth this year.

Silver shines

“Many first-time buyers entered the market, primarily driven by the investment opportunity, with prediction of gold prices rising further. However, demand was muted in the higher-denomination category due to the high price of gold. Consumers adapted their purchasing behaviour: opting for lower denomination or preferring to move to silver, while some waited for prices to stabilise,” Samit Guha, chief financial and technology officer of MMTC-PAMP that sells gold and silver coins and bars.

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MMTC-PAMP is a joint venture between India’s state-run MMTC Ltd, and Swiss-based bullion brand PAMP SA.

Guha said silver saw a huge increase in demand, with volumes more than doubling over the previous year.

“Regarding jewellery purchases, consumers opted for smaller, lightweight pieces, prioritising daily wear but at a higher value. Furthermore, there has been a notable surge in the purchase of gold ETFs and Digital Gold due to their low making charges and investment appeal. Overall, compared to last Akshaya Tritiya, we witnessed robust growth in silver for offline sales and exponential growth across our digital and e-commerce platforms.” he said.

After rallying since the start of the year and approaching the ₹100,000 per 10 gram-mark late last month, gold prices on India’s Multi Commodity Exchange (MCX) have since retreated. Weaker international prices, driven by a stronger US dollar and easing trade tensions caused a drop of over ₹500 on Akshaya Tritiya on Wednesday, with prices settling near ₹95,000 per 10 grams.

Consumers made small token purchases, although overall volumes declined year-on-year.

“Value-wise, there has been a growth of 20% but volume wise there has been a de-growth of 15% to 18% in gold purchases,” said Suvankar Sen, managing director and chief executive of Senco Gold Ltd, which operates 171 stores across the country.

However, demand for diamond jewellery grew both in value and volume terms, he said. Overall, demand during Akshaya Tritiya was led by purchase of wedding jewellery and small token pieces.

A recent surge in gold prices has prompted retailers to ramp up offerings to lure customers. Consumers, on the other hand, are either resorting to returning old gold or waiting for prices to cool.

Gold continues to remain a draw for Indian households, with a large part of gold sales linked to weddings in the country.

“Despite the ongoing market volatility, consumer preferences leaned towards gold, particularly in the lightweight jewellery category, with notable traction in rings, earrings, pendants, and chains. The diamond category also saw good movement, especially within lightweight designs,” Ramesh Kalyanaraman, executive director, Kalyan Jewellers.

Gold coins continued to be a preferred choice among customers, alongside strong demand for silver—both in coins and artefacts, he said. The retailer operates over 250 stores in India.

Rajesh Rokde, chairman, All India Gem and Jewellery Domestic Council, said the recent price fluctuations—peaking at ₹99,500 on 22 April, and now down to ₹95,000—have reinforced buyers’ confidence in gold as a strong investment.

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“Today, we observe 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. With the drop in gold prices, the number of customers has notably increased, contributing to an impressive total sales figure of Rs20,000 crore today. Furthermore, as the wedding season kicks off during Akshaya Tritiya, demand is expected to rise significantly in the coming days,” he said.

Additionally, Rokde emphasized the increasing demand for lightweight jewellery. “There is a noticeable shift towards lightweight designs, particularly among younger buyers,” he said.