Sky-high gold prices throttle Akshaya Tritiya rush for precious metals

This year’s Akshaya Tritiya seemed to have lost its shimmer due to the skyrocketing gold prices. The Confederation of All India Traders (CAIT) confirmed the same to agencies on Tuesday,

Akshaya Tritiya, the Hindu festival that falls on April 30 this year, is expected to rake in ₹16,000 crore in business, according to All India Jewellers and Goldsmith Federation President Pankaj Arora. Yet it is much lower than it should be, as industry body CAIT looks at a “mixed trend” in silver and gold.

“This year,” CAIT stated, “…jewellery markets across the country are witnessing mixed trends ahead of Akshaya Tritiya, mainly due to the sharp rise in gold prices in recent weeks.”

Akshaya Tritiya in India is considered an auspicious time to buy gold.

“Typically, Akshaya Tritiya sees a surge in purchases, but this year, elevated prices have affected consumer demand,” Arora explained.

Globally, gold prices dropped on Wednesday as trade war tensions eased and the dollar appreciated. This led to bullion becoming more expensive outside the US, and demand dropped.

However, in India, gold prices touched ₹1 lakh per 10 grams—up more than 35 per cent from ₹73,500 on Akshaya Tritiya last year. Silver also touched ₹1 lakh per kg, getting dearer by more than 15 per cent from ₹86,000 two years ago.

Arora estimates ₹12,000 crore to change hands with 12 tonnes in gold sales on Akshaya Tritiya this time around. However, the higher prices would lead to a slight slowdown in customer buying sentiment.

In India, the ongoing wedding season kept the gold prices higher, despite a global slowdown in demand, added CAIT National President B C Bhartia.

Things to do on Akshaya Tritiya

Akshaya Tritiya is believed to be an auspicious time to start something, which also adds to the interest in buying gold. Here are a few things people do on Akshaya Tritiya.

One, is planting a new seed or spaling like tulsi, or a fruit tree. Second, is to kick off an important task that has been lying dormant in your to-do list. Third, is to buy other metals—like utensils or a new thali. Fourth, is to invest in oneself, like beginning a new course or studies. Fifth, is to donate to someone in need or visit an old-age home to sponsor a day’s meal. And sixth, as per Hindu beliefs, is to pray to deities Lakshmi and Vishnu by lighting a ghee lamp, and offering fresh flowers and sweets.

If you are into shopping sprees, look for discounts across physical stores, e-commerce outlets, and even jewellers.

Business