No gold rush ahead of Akshaya Tritiya

Mangaluru: With Akshaya Tritiya set to be celebrated this time on April 19 and 20, jewellers are reworking collections with sleeker, lighter designs to match what they describe as ‘shrinkflated' demand, where consumers buy smaller quantities of jewellery due to price rise.Gold demand has slumped by 40%-50% compared to last year, industry representatives said, with an ongoing LPG shortage at manufacturing units adding to their concerns. "Gold demand fell nearly 30% last year due to geopolitical uncertainty and job loss fears, and dropped another 50% this year," said Prashant Shet, secretary of Jewellers Association, Mangaluru, noting that affordability is pushing buyers towards smaller quantities. "We are clearly seeing shrinkflation. Those who bought 8 grams are now opting for 4, 24 grams, and even 1 gram buyers are shifting to half a gram. Lower-purity options like 14-carat and 9-carat gold are also gaining traction," he said. Shet said that younger consumers are increasingly turning to gold ETFs instead of physical gold, while others are exploring alternatives like silver, shell jewellery (made from natural shells) and others. "With ongoing global conflicts and this region's dependence on Middle East income, uncertainty is high," he said. Venkateswar Laxman of the Jewellers Association, Bengaluru, agreed that demand has fallen 40%-50%, calling it a statewide trend. "Consumers plan a fixed investment for Akshaya Tritiya, but rising prices mean they get less gold. Coin sizes have steadily reduced from 8 grams to even 0.5 and 0.25 grams," he noted. On the supply side, KL Harish, district president of the Goldsmith Workers' Association, said LPG shortages have impacted manufacturing, though jewellers are absorbing costs and offering festive discounts. Diamond jewellery demand remains limited compared to larger markets like Mumbai and Bengaluru, he added.