Akshaya Tritiya 2025: Gold prices soar ₹54,572 in five years, but festive demand remains resilient despite record highs

As Akshaya Tritiya 2025 approaches, gold continues to shine bright despite prices nearing ₹1 lakh for 10 grams. Gold prices in Ahmedabad have more than doubled over the past five years, soaring from ₹40,989 per 10 grams on 29 April 2020 to ₹95,561 on 29 April 2025, according to MCX data. This marks an absolute increase of ₹54,572, reflecting a sharp 18.3% CAGR rise in value. The steep climb highlights global economic uncertainties, central bank accumulation, and a strong investor shift toward safe-haven assets.

"Geographically, the Indian consumer demand for Gold on Akshaya Tritiya is more concentrated from South India, contributing 40% followed by West 25%, East 20% and North 10%.  Consumers in North India focus more on Dhanteras festival for Gold buying," noted a report from the market research firm Ventura on Akshaya Tritiya.

This shows, despite the historic highs, demand ahead of Akshaya Tritiya 2025 remains steady, particularly in southern India. Jewellers are responding with lighter collections, silver alternatives, and attractive offers to match evolving consumer preferences and protect sales momentum, according to the Jewellers Association.

Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL) said that consumer sentiment remains upbeat, especially in southern India, where the festival holds deep cultural significance. However, soaring prices have reshaped buying patterns. "High prices have changed consumer behaviour, with buyers opting for lighter-weight jewellery and coins, rather than heavy jewellery. Jewellers are responding to high pricing by announcing new collections, discounts on making charges and promoting silver jewellery. While volumes of gold may decline, the overall value of gold sales is likely to remain constant or increase, with high pricing and careful promotional activity accounting for the additional value," he added.

However, the surging gold prices have significantly impacted consumer behaviour. As families prepare for Akshaya Tritiya and upcoming weddings in the months of May, June and July, many are adopting a cautious approach due to the high price volatility.

Jewellers, on the other hand, are making lucrative offers like lighter jewellery (Gold items made with 1 – 1 ½ sovereigns instead of 2 sovereigns) and exchange of old jewellery for full value.

Experts anticipate a decrease in gold sales volume by around 10-20% compared to last year. While volume may decline, revenue could remain comparable or even see slight growth due to higher ticket sizes of expensive pieces. Gold volumes on the two days of Akshaya Tritiya buying generally clock between 20 to 27 tons. Jewellers are offering promotional deals, advance bookings, and other incentives to attract customers.

Sentiment bottlenecks - The surge in gold prices is the primary factor impacting consumer behaviour, besides global economic uncertainty making them cautious in their approach. This also has an impact on the cultural significance of buying during Akshaya Tritiya," per the report.

Is it wise to invest in gold and silver?

In the precious metals sector, gold and silver offer unique strengths that can enhance an investment portfolio. "A discerning investor can achieve a diversified and balanced approach to wealth preservation and growth by incorporating both metals. Considering their price differential, analysts recommend allocating 10-15% of one’s investment portfolio among gold and silver. Gold serves as a safe-haven asset, providing stability in the long term, while silver is favoured for its intrinsic potential for higher returns, particularly due to its industrial applications in the sustainable energy sectors such as solar power and EVs," said Samit Guha, Chief Financial and Technology Officer of MMTC-PAMP.