India bought 24% less gold jewellery last year. The bill was the highest in history.
On Akshaya Tritiya — the day Hindus consider most auspicious for buying gold — 24-karat gold sat at ₹1,54,900 per 10 grams. That’s up 464% from ₹27,445 a decade ago. Industry bodies CAIT and AIJGF projected gold and silver trade would cross ₹20,000 crore — up from roughly ₹12,000 crore last year. The headline sounds like a gold rush. It isn’t.
The ₹20,000 Crore Illusion
Reuters reported what the trade bodies didn’t emphasise: physical gold demand on Akshaya Tritiya 2026 was “muted.” Volume fell. Value soared. The ₹20,000 crore is almost entirely price-driven — gold gained over 60% in the past year alone, peaking at ₹1,83,050 per 10 grams in January before pulling back as the rupee hit record lows.
The World Gold Council’s numbers make the gap sharper. India’s jewellery demand by volume fell 24% year-on-year in 2025 — down to 430.5 tonnes. For 2026, total demand is projected at 600–700 metric tonnes, a decline. India is paying record prices for fewer grams.
But fewer grams doesn’t mean less gold buying. It means different gold buying.
Where the Money Actually Went
Amazon, BharatPe, and JioFinance all launched digital gold campaigns for Akshaya Tritiya. Gold ETFs and Sovereign Gold Bonds are pulling buyers away from jewellers as investment flows shifted away from equities. Consumers who once walked into family stores for heavy necklaces now buy 0.5 grams on a phone screen.
The shift tracks a broader pattern reshaping India’s economy: gold is becoming a financial asset, not a consumption good. When a decade’s return hits 464%, people stop thinking about weddings and start thinking about portfolios.
India bought 24% less gold jewellery last year — and the bill was the highest in history. On Akshaya Tritiya 2026, the love affair didn’t end. It just moved to a screen.