Saurabh Gadgil, Chairman and MD of PNG Jewellers, said that while jewellery continues to lead, investment demand is on the rise. “On any festive date, basically it is 70-30, 70% is jewellery buying; 30% is investment demand, which is bars and coins. This time, I think it will be 60-40,” he said.
Gadgil added that many first-time investors are entering the market, driven by predictions that gold prices may touch $4,000 or ₹1,10,000 per 10 grams.
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The festive mood remains upbeat despite the shift. “On the jewellery side, the numbers should be good. Investment demand is very high and that will continue,” Gadgil noted, highlighting how market sentiment is being influenced by bullish forecasts for gold.
He also pointed to changing consumer behaviour. “Today, the ratio would be 80-20, 80% would be fresh shopping, and 20% would be old gold, which, on average, for last two months has been 60% old gold, 40% new gold,” he explained. According to him, Akshaya Tritiya holds emotional and cultural value, with people preferring to buy something new — even in small quantities — and take it home as a symbol of good luck.
However, rising gold prices are also weighing on sales volume. Suvankar Sen, MD & CEO at Senco Gold & Diamonds, said, “The increase in gold prices might make us see value-wise growth, but the volumes have taken a hit. This 20-25% de-growth in volume will continue to happen.”
Despite this, Sen believes brands are trying their best to adapt. “People are giving discounts on the gold rates or making charges… all big brands are focusing on the new design collections,” he said. While value-wise growth during Akshaya Tritiya may be 15-20%, the challenge lies in maintaining volume.
In summary, gold remains a key festive buy — but this year, more consumers are seeing it not just as adornment, but also as a safe investment amid market uncertainty.
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