Akshaya Tritiya: Is Gold Commodity a Good Investment in 2024?

Akshaya Tritiya, a well-known Indian festival celebrated by Hindus and Jains, is of immense importance as it is one of the most auspicious days according to the Hindu Calendar. The festival falls on the third lunar day in the month of Vaisakha. 

The Hindus believe Akshaya Tritiya to be the birthday of Parasurama, a sixth avatar of God Vishnu. In Jainism, Akshaya Tritiya is an important festival as it commemorates the first Trithankara, Rishabhanatha, who ended his one-year asceticism by consuming the juice of sugarcane poured into his cupped hands. 

Past Year’s Gold Performance in Akshaya Tritiya

As we know, the Gold is very precious for Indians and love for the Gold is not fadable. The 10 gram Gold price is nearly Rs 3000 and gold investment lovers are now looking to buy this precious metal on the auspicious day of Akshaya Tritiya. 

In the current year Akshaya Tritiya will be celebrated on Friday, May 10, 2024. As per the estimate by many analysts, Gold can deliver between 7% to 19% returns by the next Akshaya Tritiya.  

On MCX exchange, Gold futures for June contract were trading around Rs 71000 per 10 gram down from all time high of Rs 73,958. 

Gold has delivered an impressive 16% returns since last year of Akshaya Tritiya which was on April 22, 2023. The price of Gold has increased by 11,300 points from Rs 59,845 from last year. 

The future outlook for Gold remains bullish and the prospectus of Gold remains robust despite the recent rally as multiple factors are supporting the strength of the price. The current year rally is primarily because of geo-political tensions between Israel - Hamas war. 

Gold witnessed strong momentum between March and April 2024, as hopes of rate cut in June, with the expectation of two more downward revisions of 25 bps points in the current year. 

Also Read | Quest Laboratories IPO: Unlocking the IPO in Detail

Gold Investment Options in India

1. Gold ETFs: ETFs are exchange-traded funds in which you can invest from your demat account. It is one of the safest ways to invest in gold without holding any physical gold. If the gold price is in a global market appreciate, then Gold ETFs will also increase. Few Gold ETFs listed in markets are Gold Bees by Nippon, ICICI Prudential Gold ETFs, SBI ETF Gold and many more.
2. Sovereign Gold Bonds: SGBs are issued by the Reserve Bank of India. Investors pay the issue amount in cash, and bonds are redeemed in cash on maturity.  SGBs are free from issues like purity of Gold or making charges in the time of gold turning into jewellery form. The SGBsare held in the books of the Central Bank or in demat form, eliminating the risk of loss and theft. 

Also Read | Digit General Insurance IPO: All You Need To Know Before Applying