Golden Prosperity: A Decade of Akshaya Tritiya Gold Rush

Akshaya Tritiya, celebrated by Hindus and Jains across India, holds immense significance as one of the four most auspicious days according to the Hindu calendar. Falling in the month of Vaisakha, it is believed that any new venture initiated on this day will flourish, bringing happiness and prosperity. With over a billion Hindus and Jains in the country, this widely observed festival marks the beginning of a fresh start.

For countless Indians, Akshaya Tritiya carries immense importance, and consumers and retailers prepare for a bustling day of commerce. Particularly, Hindus and Jains enthusiastically partake in the tradition of purchasing gold on this day, as they believe it invites prosperity into their lives. Akshaya Tritiya falls in the Vaisakha month and is deemed one of the four most propitious days, according to the Hindu calendar.

India’s long-standing affinity for gold dates back several millennia, spanning the eras of the Ashoka, Maurya, and Gupta empires. It is, therefore, no surprise that a special day in the Indian calendar commemorates this deep-rooted connection to gold while reinforcing the belief that the precious metal fosters substantial growth in wealth.

India’s Affinity for Gold

India is well-known for its love of gold, ranking as one of the largest consumers of precious metals worldwide. With gold reserves exceeding 550 tons, the total amount of gold in the country is estimated to be over 20,000 tons.

Akshaya Tritiya: A Prosperous Day for Gold Investments

On Akshaya Tritiya, millions of Indians invest in gold, marking the commencement of a new cycle. It is believed that investments made on this auspicious day bring prosperity. Consequently, gold is in high demand across India as it is considered the best investment option. Besides its auspicious significance, gold’s practicality and reputation as a wise investment further contribute to the surge in demand on this day.

Gold Market Trends during Akshaya Tritiya

This day holds immense importance for devout followers of Hinduism and Jainism, resulting in a peak in gold sales. According to a major publication, gold sales increased by 30.5% in 2017 compared to the previous year. To put this into perspective, gold sales reached nearly 23.5 tons in 2017, compared to the 18 tons sold in May 2016.

Gold prices usually rise on Akshaya Tritiya and the preceding days due to heightened demand from both buyers and retailers. However, the global bullion market’s influence on gold pricing cannot be underestimated. On the consumer side, numerous offers and discounts can be found, with various jewelers likely to provide benefits such as ‘nil making charges,’ ‘wastage,’ and similar incentives. It is essential to compare rates from different sellers before purchasing, as these offers are entirely at the sellers’ discretion.

Key Gold Investment Options in India

Gold ETFs (Exchange-Traded Funds)

Gold ETFs are mutual funds that follow the domestic price of physical gold. The fund management company utilizes your investment to purchase gold bullion. As gold ETFs are listed and traded on stock exchanges, investing in them is secure and well-regulated. Gold ETF units can be bought and sold on the stock exchange just like stocks, with a minimum investment of one unit, corresponding to the price of one gram of physical gold. Gold ETFs offer high liquidity due to their listing on stock exchanges and can be easily traded.

Sovereign Gold Bond Schemes

Sovereign gold bond schemes are government-issued bonds by the Reserve Bank of India (RBI), representing grams of physical gold. These bonds can be purchased through banks, post offices, the Stock Holding Corporation of India, and authorized stock exchanges. They are also available in limited tranches each year. You can apply for them online through platforms like IDFC FIRST Bank’s SGB investment page. The minimum investment amount is one gram, with a maximum limit of 4 kg for individuals. Sovereign gold bonds offer a guaranteed 2.5% annual interest rate in addition to gold price appreciation. These bonds have an 8-year tenure, with options for redemption or encashment starting from the fifth year. When held in Demat form, SGBs can be traded on stock exchanges among eligible investors.

Gold investments can undoubtedly serve as a crucial component of one’s investment portfolio. Select the most suitable option from these four gold investment alternatives to capitalise on the wealth-preservation benefits of gold.

Let us have a look at Gold prices in Akshaya Tritiya over the last 10 years.

Silver Prices for the last 10 Years on the occasion of Akshaya Tritiya.