Go For Gold This Dhanteras- Why It’s The Best Investment Move

You don’t have to be a financial whiz kid to know that gold is one of the most solid safety nets when it comes to investing for a rainy day. The yellow-hued metal has occupied a special place of importance in Indian households for centuries and it’s not just because it looks pretty.

In the age of crypto, mutual funds and SIPs (Systematic Investment Plans),gold is a tried and tested assetthat has delivered returns consistently over a remarkable period of 20 years!

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According to research conducted byJP Morgan,due to the increased demand for the yellow-hued metal, gold prices are expected to hit an all-time high by the end of 2024 globally. In India, the price of 24-carat yellow metal prices remained unchanged at Rs 7,96,400/per gm.

As we near the peak of the festive season and Dhanteras, gold in India has been gaining an upward momentum tremendously and looks like there is no better time to invest in gold.

Everything To Know About Buying Gold During Dhanteras

Dhanteras is a combination of two words (Dhan and terah) which translates to the thirteenth day of the lunar month, when as per Hindu mythology, Goddess Lakshmi makes an appearance along with the celestial medic Dhanvantri as a result of the churning of the ocean. People believe that buying gold during this season invokes the blessings of the goddess.

“Dhanteras is an auspicious day to buy metals like gold because this is the period of Sarva Siddhi Yoga and hence gold bought during this period is 1000 times more beneficial than those bought some other time.“The metal gold embodies the energies of the planets of positivity, optimism and gold, which are the Sun and Jupiter, hence bringing in gold into their new house really helps,” says astrologer Dr Vivek Chopra.

Why gold?

Gold has been loved globally since civilisations and there is ample historical evidence for the same. The tomb of Pharaoh Tutankhamun was excavated in Egypt with 100 kgs of gold. Even today, the gold one possesses speaks largely about a person’s wealth.

“Gold was the standard currency all around the world,” says historian Dr Nanditha Krishna, “The drawbacks of the barter system and the noble properties of the metal were the chief reason why it was used in making currencies and later ornaments. When social division happened as per occupations, it was gold that was used to differentiate between classes.”

Why is gold considered a solid investment?

Investing in gold is a wise move to safeguard your security during rainy days, as its demand remains high irrespective of change in market conditions, or even famine. Due to its high demand, we saw people investing in gold heavily during the dot-com bubble of the early 2000s, the global financial crisis of 2008 and again during the 2020 coronavirus recession.

Not much has changed today, as per research conducted by theWorld Gold Council,gold has performed exceptionally well in comparison to other assets with a hike of 12 percent year to date.

“Gold today is one of the most steady and reliable options” agrees, chartered accountant and finance coach Jay Viral Desai, “When prices rise during inflation, your savings may lose value, but gold holds its value. And in periods of deflation, historically, when global equities have declined in value, the prices of gold have always fared better.”

A Tangible Investment

For those who hate taking risks, may we tell you that investing in gold is actually a pretty safe bet.

Unlike other stock and asset investments, investing in gold does not need any theoretical knowledge or an understanding of Adam Smith’s interpretation of free trade. “People with no knowledge of market and price fluctuation can also buy gold in physical forms such as coins, bars or even bricks from renowned jewellers, but they should always make sure that the company has a Hallmark certification and the gold is of 24 pure carat variant.”

Physical options remain the most common form of investing in gold, whether it is coins, bars, jewellery or bricks. In case you wish to avoid any additional charges of making and routine maintenance, then gold bars and bricks are the safest options.

It has a high liquidity value

An increased demand for gold due to an increase in population and lifestyle changes over the years makes it one of the most easily liquefiable, addedly, it is a non-renewable natural asset that makes it rare and priceless.

“Gold is acceptable around the world which makes it one of the most easily liquefiable assets,” says CA Shitij Gupta, “The demand for gold is always at an all-time high and hence it is easy to liquefy gold assets and secure a loan against them in banks or even get an exchange of bonds in the share market.”

What are the different ways you can invest in gold?

Digital gold all the way

If you are curious about investing in digital gold, apart from reading the terms and conditions which we tend to skip all the time “Investors should consider implementing blockchain technology, a modernised secured database mechanism, something that your tech-enthusiast friends will tell you better, to protect the details of their transactions,” says CA Mukander Beniwal.

“Digital gold or ETFs (exchange trading funds) allow couples to invest in gold without the headache of storing physical gold or worrying about purity. You buy units online, and these are backed by physical gold, so you get the same exposure to gold prices. Plus, they’re easy to buy and sell anytime through your brokerage account, offering liquidity and flexibility, much like stocks. It’s a simple, low-maintenance way to add gold to your portfolios,” says Jay Viral Desai.

Shares in gold companies

For all those who wish to venture into gold investments without owning any physical gold, then buying stocks in companies like refining, mining and ores is a great way to kickstart your investment.

“Gold mining companies have often been accused of using unethical practices to extract gold from the earth's core,” says Mukander, “People before investing in shares of gold, mining, refining companies should make sure that the companies comply with the principles of RGMP (responsible gold mining principles) designed by the World gold council and investors should also make sure that the companies have fairmine and fair trade certifications to make sure that the mining is extracted in compliance with the norms of environmental protection.”

Gold buying schemes

Are you unable to buy gold in a lump sum? Fret not, jewellery brands have come up with gold-buying schemes that can be redeemed after a fixed period in exchange for jewellery or physical assets or liquefy the money invested so far. So, for special occasions like birthdays, anniversaries or weddings, a gold-buying scheme works wonders. Also, it does not come with any additional costs like making charges and also offers bonuses at the end of the term which is a cherry on the cake.

Sovereign gold bonds (SGB)

The latest and the most innovative way of investing in gold is to procure SGBs advertised by the government. Hence, for those wishing to buy a house, plan a child or go on a world tour, you will surely thank yourself later for investing in SGBs early on in life.

“Sovereign gold bonds are the best way to invest in gold,” says CA Shitij Gupta. “It is backed by the central government additionally investors get interest at a rate of 2.5 per cent and investors who hold this till maturity are exempted from taxation.”

Whether it’s physical assets or the latest technologically evolved forms like digital gold and savings schemes, investing in gold is a financial step that can never go wrong. So, are you going to invest in gold this Dhanteras?

Cover Image credits:

Editor: Chaiti Narula;Photography: Nitin Sadana; Creative Direction: Neha Ahuja; Styling: Palak Valecha; Hair and Make-Up: Bobby Uppal; Model: Anjali Pathak; Fashion Assistants: Tanushi Goswami and Smriti Mishra; Production Editor: Neha Ahuja; Location Courtesy: D’Monde Members Club;Lehenga: Shanti Banaras;Jewellery: Isvari Jalandhar Jewellery House