Should You Buy Gold On Akshaya Trititya? Expert Shares Investment Advice

Akshaya Tritiya or Akha Teej is a spring festival celebrated in India by the Hindu and Jain communities. It is an auspicious day that signifies the ‘third day of unending prosperity’.

Akshaya in Sanskrit means never decreasing prosperity, joy, hope and success. Tritiya refers to the third phase of the moon. This year, Akshaya Tritiya will be celebrated on April 22.

Since the festival marks new beginnings, people offer prayers to God and mostly invest in gold jewellery or other assets that stand for prosperity. The day is also considered auspicious for married people who have begun their new life and unmarried ones who are looking for a partner.

But mostly the festival is about investment, especially in gold. Therefore, we spoke with Anushka Rathod, finance content creator, to know if one should invest in gold on Akshaya Tritiya. Is it even a good investment?

Significance & Reason For Buying Gold On Akshaya Tritiya 2024

Gold signifies wealth and prosperity around the globe. However, Indians consider purchasing metal for every kind of celebration. No matter what the festival may be, either Akshaya Tritiya or Dhanteras, buying gold makes it all worth it.

For Hindus, the metal is quite precious because Gods and Goddesses are pictured wearing it. It is a sign of how wealthy you are.

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Rathod said that gold is a versatile asset, only if a person knows how to invest. “Its attributes such as high liquidity and negative correlation to other assets make it not only a great portfolio diversifier but also a great hedge against inflation and market volatility,” she added.

In Which Form Should You Purchase Gold On Akshaya Tritiya ?

Rathod noted that most people buy gold as an investment (investment options for women), but it must be considered a luxury purchase, which means it is not the most necessary saving solution.

She suggested people must reconsider buying gold ornaments. They involve high making charges in addition to GST (Goods And Services Tax). Hence, according to the finance creator, jewellery gives the bare minimum profit on gold.

However, she suggested opting for other options that can offer a good return on investment. According to her, a person can invest in the Sovereign Gold Bond by the RBI and offer an extra 2.5% appreciation over the increment in the price of gold. She also added that this option comes with a lock-in period of five years after which the investor can prematurely withdraw.

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The secondary market is not as liquid. If a person has short-term goals, Gold ETFs (Exchange Traded Funds) are the better choice. It represents physical gold as an asset on paper or in a dematerialised form. One ETF is equivalent to 1gm of gold. It is backed by physical gold of the highest purity. It is a blend of the simplicity of gold investment and the flexibility of stock investment.

Buying ETFs simply means purchasing the metal in electronic form. As mentioned in our last article on tips to buy gold on Akshaya Tritiya, the Government of India is also promoting investment in it. Moreover, when you purchase Gold ETFs, you will not have to bear the capital gain tax.

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