On Wednesday, April 30, 2025, the auspicious day of Akshaya Tritiya, gold and silver buying in India surged despite record-high prices, with gold sales alone projected to reach ₹12,000 crore. The day, traditionally celebrated for its significance in Hindu culture, saw consumers flocking to jewelry stores across the country, driven by both cultural beliefs and the ongoing wedding season.
According to Praveen Khandelwal, National Secretary General of the Confederation of All India Traders (CAIT), approximately ₹12,000 crore worth of gold jewelry and related items were sold nationwide. Silver trade also witnessed significant activity, estimated at around ₹4,000 crore. Khandelwal highlighted that despite the steep rise in gold and silver prices, the enduring belief in the auspiciousness of Akshaya Tritiya contributed to robust business activity.
On this day, gold was priced at ₹97,500 per 10 grams, with silver at ₹98,000 per kilogram. Interestingly, gold prices dropped by ₹1,000 and silver by ₹2,000 during the day, yet consumer interest remained steady, reflecting the deep-rooted cultural significance of this occasion.
In the context of investment, analysts are recommending a balanced approach. Yogesh Kansal, Co-founder and Chief Business Officer at Appreciate, suggested maintaining a portfolio allocation of about 5–15% in gold, complemented by a similar amount in short-term bonds, with the remainder in a mix of Indian and international stocks. He emphasized that gold has nearly doubled since 2022, reinforcing its status as a safe investment during times of economic uncertainty.
Rahul Kalantri, VP Commodities at Mehta Equities, noted that gold has consistently provided a feeling of safety, especially during turbulent times. "On the auspicious day, gold continues to live up to its legacy as a symbol of wealth and prosperity. With consistent gains in 11 of the past 14 years—and especially strong double-digit returns in the last three—gold has nearly doubled since 2022," Kalantri stated.
Despite the celebration, the ongoing rally that began in May 2024 has lasted for 130 weeks, with the World Gold Council reporting that total gold demand increased by 1% year-on-year to 1,206 tonnes in the first quarter of 2025. Investment was the key driver of this growth, particularly through gold ETFs and elevated bar and coin buying.
However, the investment landscape is nuanced. Anitha Rangan, Economist at Equirus Securities, mentioned that the current gold rally is driven by both reserves and uncertainty. "Perhaps gold could have more legs in this rally. Or at least we would not see any meaningful reversal unless uncertainty simmers. For India, domestic prices and rupee depreciation will keep gold price rise intact," Rangan explained.
India's gold demand in the first three months of 2025 stood at 118.1 tonnes, reflecting a 15% drop from 139 tonnes in the same period last year. Yet, the overall value of demand surged by 22%, propelled by soaring global gold prices, which have risen 25% since January 2025. Investment demand for gold rose 7% year-on-year to 46.7 tonnes during this period, while jewelry demand declined by 25% to 71.4 tonnes from 95.5 tonnes in Q1 2024.
As consumers navigate the complexities of gold purchasing, experts advise caution. Making charges for gold jewelry can range from 5% to 10% or more, depending on the design, with additional GST at 3%. Buyers are encouraged to check for the BIS hallmark on jewelry, which confirms gold's purity, and understand the terms and conditions associated with special offers and discounts.
In light of the current market conditions, Dr. Renisha Chainani, Head of Research at Augmont, noted that gold has historically delivered robust returns, averaging a 15% CAGR over the last 20 years. "Gold has also acted as a hedge against inflation, currency depreciation, and geopolitical uncertainties," she added. However, with prices near record levels, she cautioned against making large purchases without careful planning.
Ajay Kedia, Director of Kedia Advisory, echoed this sentiment, suggesting that while gold has delivered impressive returns, it may be prudent to buy gold primarily for ceremonial purposes this year, rather than as an investment. He anticipates that gold prices could retrace towards ₹86,000 to ₹87,000 levels in the coming months.
Interestingly, silver is emerging as a strong contender for investor attention, with prices surging 15.62% from Akshaya Tritiya 2024 to 2025. The five-year CAGR for silver from April 2020 stands at nearly 20%, driven by robust industrial demand. Experts suggest that silver may offer better upside potential in the short to medium term, particularly given its applications in solar energy, electronics, and green technologies.
As the festivities of Akshaya Tritiya unfold, the question remains: Is gold still the best investment? While it continues to be a reliable asset, the growing interest in silver suggests that diversification could be key for investors looking to balance their portfolios. As consumers celebrate this auspicious occasion, experts urge them to consider both tradition and strategy in their purchasing decisions.
