Akshay Tritya And India’s Obsession With Buying Gold
It’s Gold time of the year again. Akshay Tritya, aptly rechristened as the Gold festival of the year, falls on Saturday 22 April this time and Indian gold brands and jewellers have already prepped up themselves to deal with the festive rush. Although the soaring gold prices may prove to be a major damper this year, the market experts feel that gold buying will not lose its sheen on the auspicious day.
Akashya Tritiya is celebrated as the birth of Lord Parshuram who is the sixth incarnation of Lord Vishnu. Treta Yug is also thought to have begun on Akshaya Tritiya. On Akshaya Tritiya, so says Indian tradition, the holy Ganga came down to Earth. On this day, the great sage Ved Vyas began writing Mahabharata.
A festival that solicits good luck, fortune and prosperity, Akshaya Tritiya is considered a good day for starting something new or buying gold. As the market gears up for the last minute buyers, here’s what industry insiders say.
The market experts reveal why Indians are so obsessed with gold buying on this day. Prathamesh Mallya, AVP Research, Non-Agro Commodities & Currency, Angel One says, “Gold (MCX futures) as an asset has been performing well in the past with returns of 14.5 percent in 2022 and 9.5% in 2023 YTD as on 17th April 2023. The fundamental factors underlying the commodity like recession across the global economy, possible pause in the interest rate hikes by the global central banks and the slowdown across the global economy will lead to continued interest in yellow metal prices rising higher in the coming months.”
Mallya adds, “In dollar terms, Gold (CMP@2000/0z) can move higher towards $2100/oz mark from a three month perspective and Rs.62000/10 gms in the Indian market (CMP:60300/10 gms) . As far as Akshay Tritiya is concerned, it is considered an auspicious occasion to buy gold hence, ir-respective of the prices, one should buy gold and accumulate it from a longer term perspective.”
“It is believed that buying gold on special days like Akshaya Tritiya brings blessings into life, which negates negativity and brings in prosperity for the whole family,” says Naveen Rastogi, Kamal Jewellers, Dehradun.
Dishi Somani of Dishis Designer Jewellery says, "Gold has a special place in Indian culture and tradition, symbolizing wealth, purity, and auspiciousness. It is believed that buying gold on Akshaya Tritiya is a way to seek the blessings of Goddess Lakshmi, the deity of wealth and prosperity. Gold is also considered a form of savings and investment in Indian households, and buying gold on this auspicious day is believed to bring long-term prosperity and security to the family."
Vijay Soni, Director, Mahabir Danwar Jewellers, Kolkata says that customers have a no holds barred attitude when it comes to gold buying on Akshay Tritya. "In spite of the high gold prices, this Akshay Tritiya has so far seen good customer footfalls and sales. This has to do a lot with customers reaffirming their faith in gold as an investment and the phenomenal return given by gold in the last few years,” Soni said.
He further adds, “Customers have preferred to buy more jewellery which can be worn and used on a daily basis. So the focus has certainly been on affordability and wearability.”
Raghav Rastogi, Jugal Kishore Jewellers by Rajan Rastogi, Lucknow says gold has forever been the best bet for Akshay Tritya. “Over the years, gold has been ruling the Akshay Tritya market. The gold price in 2021 was Rs 45800 for 10 gm, Rs 50800 in 2022 and this year, it is expected to reach approximately Rs 62000 for 24 kt 10 gm. Gold has been and will be the best performer.”
Premjit Sengupta, Consultant, Gems & Jewellery Industry says Gold is the most sought after commodity on this day. “Gold is the most sought after thing to be bought on Akshay Tritiya as it is believed that gold bought on this day multiplies the wealth of the buyer. In fact gold has proved this saying right by multiplying itself almost 12 times in the last 20 years,” Sengupta says.
His sentiments are echoed by Saumitra Saraf, Director, Aisshpra Gems & Jewels, Gorakhpur.
“Indians look at gold not only as an investment but it holds significant religious value. It is believed that gold appeases Maa laxmi. Gold has been considered as a safe haven investment and has proved its worth. Akshaya tritiya is one of those days of the year when Indians make sure to save and invest in gold.”
While gold ofcourse happens to be a safe bet on Akshay Tritya, diamonds too are the new gold for those looking to buy for the wedding season.
“We are noticing a significant rise in footfall across all our partner retailers and are expecting a good number of walk-in customers on the auspicious day of Akshaya Tritiya. With the festivities back in full swing last year, we expect the momentum to continue this year as well, particularly in South India where Akshaya Tritiya is a major festivity. Also with the positive shift in consumer buying patterns towards the purchase of items that hold meaning and value, natural diamonds continue to be sought after due to their inherent preciousness. With this growth outlook and strong demand, we will continue to strengthen our brand through our authorised partners, our e-commerce platform and our exclusive boutiques across the country. We are expecting around 25 to 30 per cent growth this Akshaya Tritiya. Overall, we are upbeat that the strong demand for this festivity will add sparkle to the jewellery retail sales for the rest of the year,” says Amit Pratihari, Vice President, De Beers Forevermark.
Eshwar Surana, Managing Director Raj Jewellers said, “Akshaya Tritiya is among one of the biggest jewellery buying festivals in India. We are expecting good traction in high value diamond studded and wedding jewellery as there are a lot of weddings planned this summer. We are also witnessing a paradigm shift in buying behaviour among consumers and the demand for quality diamonds has already been very strong in the run-up to Akshaya Tritiya. With changing times, we have witnessed different trends in the jewellery industry, only to desire for more. Just like every year, we are hopeful and positive that the coming season will be fruitful for the industry, setting new milestones. Overall, we are estimating that there will be a 20 - 25 per cent growth in value terms over last year and will surpass our sales expectations.”
