- Gold ETFs saw significant inflows, indicating strong investor interest.
- Jewelry retailers anticipate robust demand for Akshaya Tritiya.
- Consumers prioritize transparency and quality in gold purchases.
As India prepares for Akshaya Tritiya, one of the most auspicious occasions for gold buying, industry leaders are anticipating robust demand driven by a mix of cultural sentiment, evolving consumer behaviour and sustained investor interest in gold as a safe-haven asset.
This year, the festival arrives at a time when gold continues to remain in focus, not just as jewellery but also as an investment avenue, as reflected in the surge in inflows into gold Exchange Traded Funds (ETFs).
Gold ETFs Signal Strong Investor Appetite
Recent data from the Association of Mutual Funds in India (AMFI), cited by PTI, shows that gold ETFs witnessed inflows of Rs 31,561 crore in the March 2026 quarter, marking a nearly six-fold increase compared to Rs 5,654 crore in the same period last year.
On a sequential basis, inflows rose 36 per cent to Rs 23,132 crore, underscoring continued investor interest despite some moderation towards the end of the quarter. In March alone, inflows stood at Rs 2,266 crore, lower than Rs 5,255 crore in February and Rs 24,040 crore in January.
Nehal Meshram, Senior Analyst at Morningstar Investment Research India, noted that while inflows moderated month-on-month, investor interest in gold-backed products remains intact.
She explained that the earlier surge in January was driven by heightened risk aversion, portfolio rebalancing and strong momentum in gold prices, making subsequent months appear softer in comparison. Even so, she emphasised that positive flows in March indicate that gold continues to serve as a diversification tool amid market volatility.
Echoing this view, Umesh Sharma, CIO-Debt at The Wealth Company Mutual Fund, said the moderation in March inflows may be linked to improving relative valuations in equities, which could have led investors to rebalance portfolios.
The strong inflows have significantly boosted the asset base of gold ETFs, with total assets under management rising to Rs 1.71 lakh crore by March 2026 from Rs 58,888 crore a year earlier. The number of investor accounts has also surged, with folios increasing to 1.24 crore from 69.69 lakh during the same period.
Jewellery Demand Builds Ahead Of Festival
Alongside financial investment demand, jewellery retailers are witnessing encouraging traction ahead of Akshaya Tritiya.
Suvankar Sen, CEO and Managing Director of Senco Gold Ltd, said customer sentiment remains upbeat heading into the festival.
He highlighted that relatively stable gold prices and the cultural importance of Akshaya Tritiya are driving purchases, particularly in lightweight jewellery categories suited for daily wear. Sen noted growing demand across rings, earrings, chains and bangles, along with increasing interest in men’s jewellery such as chains and bracelets.
He added that early demand from wedding buyers is also picking up ahead of the summer season, with the company expecting overall growth of around 15-20 per cent compared to last year.
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Shift Towards Conscious And Informed Buying
Industry experts point to a noticeable shift in how consumers approach gold purchases.
Kaushlendra Sinha, CEO of IAGES, said that while the cultural significance of buying gold on Akshaya Tritiya remains intact, consumers are increasingly combining sentiment with informed decision-making.
He noted that buyers are placing greater emphasis on transparency and trust, seeking assurance in the authenticity and quality of their purchases.
Similarly, Jignesh Mehta, Managing Director and Founder of Divine Solitaires, observed that consumers are becoming more discerning, focusing on intrinsic value, quality and long-term security when investing in gold and jewellery.
Rising Demand For Premium And Diamond Jewellery
Beyond traditional gold purchases, the demand landscape is evolving with increasing interest in premium and diamond-studded jewellery.
Eshwar Surana, Managing Director of Raj Diamonds, said Akshaya Tritiya continues to be one of the biggest jewellery buying occasions in India, with its appeal now extending across regions.
He pointed out that the upcoming wedding season is expected to drive strong demand for high-value jewellery, particularly diamond-studded pieces.
Surana also highlighted a shift in consumer preferences towards larger, high-quality diamonds with superior craftsmanship, reflecting a growing desire for individuality and long-term value.
He estimates that the industry could see value growth of 20-25 per cent compared to last year.
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Tradition Meets Investment Strategy
The convergence of strong ETF inflows and robust jewellery demand suggests that gold is increasingly being viewed through a dual lens, as both a cultural asset and a financial instrument.
Gold ETFs, which track domestic gold prices and offer a convenient, transparent way to invest in the metal, have gained traction among investors seeking diversification without the challenges of holding physical gold.
At the same time, traditional buying during festivals like Akshaya Tritiya continues to anchor demand, ensuring that gold retains its emotional and cultural significance.
