Akshaya Tritiya 2024: Lightweight Jewellery Dominates Amid Record Gold Prices
This Akshaya Tritiya, Indian consumers are embracing lightweight jewellery as a strategic response to soaring gold prices, balancing cultural traditions with budget constraints. The festival, considered highly auspicious for buying gold and silver, has witnessed a significant shift in purchasing patterns, driven by economic factors and evolving consumer preferences.
Steep Price Surge Reshapes Consumer Behaviour
Gold prices have skyrocketed by nearly 57% year-on-year since last year's Akshaya Tritiya, climbing from approximately Rs 97,000 per 10 grams to around Rs 1,52,000 today. Silver has experienced an even more dramatic increase, surging 163% from about Rs 97,000 per kilogram to Rs 2,55,000, according to Samit Guha, MD & CEO at MMTC-PAMP. This sharp rise has nudged buyers towards more calculated and value-driven purchases.
At Joyalukkas stores, footfall remained steady, with shoppers primarily opting for lightweight and daily-wear gold jewellery, alongside some bridal acquisitions. Joy Alukkas, chairman & MD of Joyalukkas, noted that consumers are prioritising practicality without sacrificing tradition. Ramesh Kalyanaraman, executive director at Kalyan Jewellers, highlighted that intent-led demand for bridal jewellery is being balanced by traditional shagun purchases, such as gold coins and lightweight designs. The brand reported robust demand in markets across North, West, and parts of South India.
Brand Strategies to Ease Financial Burden
To alleviate the financial pressure on consumers and stimulate demand on this brisk business day, jewellery brands have introduced attractive incentives. For instance:
- Malabar Gold & Diamonds is offering up to 30% discount on making charges for gold jewellery, along with similar deals on diamond value.
- Joyalukkas is allowing customers to lock in gold prices from Sunday, providing a hedge against future price increases.
Additionally, brands are leveraging quick commerce platforms to enhance accessibility. Kalyanaraman emphasised that their strategic integration with Swiggy Instamart has been pivotal in catering to convenience-led and last-minute purchases, tapping into the growing trend of instant shopping across diverse consumer segments.
Shift Towards Rational and Investment-Focused Purchases
Consumers are making more deliberate choices, increasingly favouring 24 karat gold and 999.9+ purity silver coins and bars. Guha described this shift as rational rather than reluctant, indicating a mature approach to precious metal acquisitions. Beyond physical jewellery, investment-related demand is also on the rise, with digital gold, gold ETFs, and silver ETFs seeing sustained inflows. Both retail and institutional investors are recognising precious metals as a meaningful component of a diversified portfolio.
Economic Impact and Industry Outlook
The Confederation of All India Traders (CAIT) estimates that this Akshaya Tritiya will generate business worth over Rs 20,000 crore in gold and silver, surpassing last year's figure of Rs 16,000 crore. Praveen Khandelwal, secretary general at CAIT, observed that elevated prices are not dampening demand but are instead reshaping buying patterns, pushing consumers towards more calculated purchases. This trend underscores the resilience of the jewellery market and its ability to adapt to economic fluctuations while maintaining cultural significance.
