Traders eye Rs 12,000 crore business as consumers flock to buy gold

On the occasion of Akshaya Tritiya, considered highly auspicious in Indian culture to a surge in purchases of gold and silver, the commodity market will witness activity of purchasing the yellow precious metal, with an estimated trade reaching Rs 12,000 crore. 

Praveen Khandelwal, General Secretary of the Confederation of All India Traders (CAIT) and Member of Parliament from Chandni Chowk, Delhi said that jewellers across the country had made extensive preparations for the day.

Despite high prices, strong demand was observed due to the ongoing wedding season and the traditional significance of the day, he said.

Will silver create equal business?

In addition to gold sales, silver worth approximately Rs 4,000 crore was also traded across the country.

"Gold is widely regarded as a safe and long-term investment in India, and many customers continued buying despite elevated prices," Khandelwal said.

Pankaj Arora, President of the All India Jewellers and Goldsmith Federation, explained that lower prices generally boost demand, but on occasions like Akshaya Tritiya, purchases continue regardless of market rates due to cultural beliefs.

CAIT National President BC Bhartia added that "Akshaya" signifies eternal prosperity. 

According to BC Bhartia of CAIT, "Gold, being a symbol of prosperity and purity, remains the most preferred asset on this day. As a result, jewellers, artisans, and traders across India eagerly await this festival every year," adding that Mythologically, it is believed that on Akshaya Tritiya, Lord Shiva blessed Kubera with immense wealth and Goddess Lakshmi was granted the status of the deity of wealth, making this day highly sacred for purchasing precious metals.

Gold rates and historical performance

The yellow commodity was priced at Rs 97,500 per 10 grams and silver at Rs 98,000 per kilogram, recording one of the highest price levels historically.

However, the rates saw a slight drop today, with gold falling by Rs 1,000 and silver by Rs 2,000.

Here is an overview of historical prices:

• 2022: Gold was priced at Rs 52,700 per 10 grams and silver at Rs 65,000 per kg
• 2023: Gold rose to Rs 61,800 and silver to Rs 76,500
• 2024: The yellow metal stood at Rs 74,900 per 10 grams