Indians spent an estimated ₹20,000 crore on gold during this year’s Akshaya Tritiya, generating record headlines, according to Archit Gupta, Founder and CEO of ClearTax. However, he said that the underlying trends pointed to a divergence between value and volume.
Highlighting that gold prices have risen 63% over the past year, Gupta said physical volumes have weakened, with average jewellers selling just 25-50 grams during the entire festival period.
In 2025, gold delivered spectacular returns of more than 70%, outperforming other asset classes such as equities, fixed income, and real estate, Mint reported earlier. Although gold prices corrected somewhat at the end of January and early February, the latest US–Iran conflict prompted investors to flock to the yellow metal as a safe haven. The uncertainty around the conflict and its repercussions is expected to keep gold prices elevated.
So where did the money go? Gupta explains
According to the executive, a substantial portion of this year’s purchases was funded through the exchange of old jewellery.
“The physical market recycled itself. 40-50% of purchases were paid for by exchanging old gold. No fresh cash. Just existing wealth changing form. India stopped absorbing gold – we started circulating it,” he wrote in his LinkedIn post, though he did not mention the source of the information.
At the same time, investment in financial forms of gold saw notable growth. The gold-backed instruments, such as Gold Exchange-Traded Funds (ETFs), recorded strong inflows during the period, alongside a rise in digital gold transactions.
“The fresh money went digital. ₹316 billion into Gold ETFs. In one quarter. Digital gold transactions up 69%. – SGBs, ETFs, PhonePe gold – all surging,” he said. The data that he shared points to a shift in how gold is being accessed and held. While the cultural significance of buying gold on Akshaya Tritiya remains intact, the investment approach is diversifying across physical and financial avenues, he says.
“The Indian buyer didn’t abandon tradition. They upgraded it. Same Akshaya Tritiya sentiment. But the capital is now liquid, market-linked, and actually working,” Gupta said in the LinkedIn post.
The era of vault is ending, says Gupta
He further mentioned that this trend shows what a maturing financial market looks like in real time. Gupta also said that the era of storing physical gold in vaults is ending as more people go digital. In traditional households, gold is usually kept in home lockers or in bank vaults.
“The next decade of Indian wealth won’t be built in vaults. It’ll be built on platforms, APIs, and products that make capital work – not just sit. The vault era is ending. The platform era is here,” he said, ending the detailed post.
Difference between gold ETF vs digital gold vs SGB
A gold ETF is a market-linked instrument that allows investors to gain exposure to gold without physically holding it. These funds are traded on stock exchanges, just as stocks do, but their prices track gold rates in real time. Investors need a demat account to buy and sell ETFs, and returns depend entirely on the price movements of the precious metal.
Digital gold is offered by platforms such as PhonePe and others, and it enables users to purchase gold online in small denominations without requiring a demat account. The gold is backed by physical reserves held by the provider, and investors can sell it digitally or convert gold into coins or jewellery.
Sovereign gold bonds (SGB) is issued by the Reserve Bank of India (RBI). It is a fixed income instrument linked to gold prices. In addition to capital appreciation, it offers a fixed annual interest of 2.5%, paid semi-annually. These bonds have an eight-year maturity period, with an exit option available after five years. If held until maturity, the capital gains are exempt from tax.
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