A considerable drop in prices of gold and silver over the recent past helped jewellers saw an impressive rush for the two precious metals on Akshaya Tritiya, on Monday.

Jewellery chains reported a year-on-year rise of up to 70 per cent in sales on Akshaya Tritiya, which is considered a very auspicious day for buying gold and silver.

Industry estimates suggest that customers purchased 20-25 tones of gold as jewellery and coins on the auspicious day.

Mehul Choksi, Chairman & Managing Director at Gitanjali, "The demand is crazy... it is exceptionally high. In volume terms, it is nearly 50% higher than in any normal year."

Gold was at Rs 26,985 per 10 grams on Monday, as against Rs 29,060 per 10 grams on Akshaya Tritiya last year. Silver slipped Rs 180 to close at Rs 46,095 per kg on Monday.

As gold and silver prices were even lower in the previous few days, several customers placed orders in advance to receive deliveries the auspicious day.

However, many banks turned down customers who didn't have accounts, fearing violation of norms set by the Reserve Bank of India.

As gold and silver prices are expected to slide further in the near term, jewellers are upbeat that demand will continue to remain strong.