"Akshaya Tritiya" Fails to Lift India’s Gold Market Amid Record-High Prices

One of India's most significant gold-buying days witnessed an unexpected dip this year, as record-high prices for the yellow metal dampened jewelry sales during Akshaya Tritiya. Meanwhile, some buyers quietly shifted toward gold coins and other investment vehicles, such as ETFs.

Typically, gold purchases during this festival—which ranks second only to Dhanteras in cultural importance—draw massive crowds to jewelry stores. However, footfall was relatively lower this year. Surendra Mehta, National Secretary of the India Bullion and Jewellers Association (IBJA), told Reuters that demand was below average across most of the country, with the exception of some regions in the southern states.

Gold futures in India closed at ₹154,609 per 10 grams on Friday, a staggering 63% increase over last year's Akshaya Tritiya levels. Although global prices have cooled from their January peak of $5,594.82 per ounce to approximately $4,861, they remain historically high, keeping many buyers cautious.

"Buyers are waiting for price drops, not seasons."

Consumer behavior has shown a marked shift. Compared to luxury jewelry, buyers preferred gold coins due to their liquidity and the absence of making charges. In response, jewelers offered discounts on labor costs to lure hesitant customers.

Data compiled by the World Gold Council highlights this evolving pattern:

Jewelry demand in India dropped by 24% year-on-year in 2025.

Investment demand rose by 17%, reaching its highest level since 2013.

According to bullion traders, gold purchases are no longer confined to festive seasons. Price-sensitive buyers now wait for market dips and purchase throughout the year. The decline in festive demand may be less about sentiment and more about a fundamental change in how Indians perceive gold. Once a ritualistic annual purchase, gold is increasingly treated as a strategic investment asset, often bought digitally with a focus on portfolio allocation rather than the occasion.

Is Now the Right Time to Buy Gold?

Paramdeep Singh, founder of LoungeTail Ventures, noted in press statements:

"The Akshaya Tritiya festival often leads to a surge in gold investment, which is usually the wrong starting point."

He suggests that at current levels, gold should be held at 5–10% of a portfolio as a hedge rather than an "investment engine," with a focus on Systematic Investment Plans (SIPs) in equities for long-term growth. He advises young investors to opt for Gold ETFs or Digital Gold instead of jewelry, which "locks in costs and limits flexibility."

Saurabh Bansal, founder of Finatwork Investment Advisors and a SEBI-registered investment advisor, emphasized the need for discipline. He stated that while buying gold on Akshaya Tritiya may hold emotional value, investment decisions should be based on asset allocation rather than recent price fluctuations.

"If gold already forms a significant part of the portfolio, buying more may not be necessary," Bansal added. He noted that while jewelry remains culturally significant, Digital Gold and Gold ETFs offer a more efficient path for young investors concerned with liquidity, storage, and purity.