Is Gold a Secure Investment in Akshaya Tritiya 2025?

In most Indian households, buying gold is a tradition in itself. Be it weddings, festivals, the birth of a baby, or a social event, buying gold is a must. And Akshaya Tritiya 2025 is no different!

As many know, Akshaya Tritiya and gold go hand in hand. Many people consider buying gold on Akshaya Tritiya auspicious as it brings eternal prosperity and growth for new ventures.

Many wonder if Akshaya Tritiya is a good time to buy gold in an ever-changing financial landscape. This article aims to give you a glimpse of the different aspects that make gold an alluring investment opportunity for many.

What Makes Gold a Safe Investment Option?

Gold has remained a captivating option for Indians for ages. This is why buying gold on Akshaya Tritiya is a blend of tradition and smart investments. But what exactly makes gold a safe haven asset? Let’s take a look:

• Steady Growth and Promising Returns: Over the years, the market has witnessed the growth of gold’s value. This is why thousands of Indians invest their money in gold every year around Akshaya Tritiya.
• Hedge Against Inflation: Typically, the price of gold rises even during the period of high inflation. This makes it a reliable option in a situation where the purchasing power of the currency declines.
• Cultural and Emotional Factors: For Indians, gold is more than just an investment. It is a status symbol, a family heirloom, a legacy, a necessity for auspicious occasions and festivities. The consistent demand for gold in the market due to its cultural and emotional factors makes it a great investment option.

Benefits of Gold Investment on Akshaya Tritiya

Akshaya Tritiya is celebrated as an auspicious day with deep cultural significance for Indians. Let’s examine the benefits of buying gold on Akshaya Tritiya:

• Traditional and Cultural Significance: Akshaya Tritiya is celebrated by purchasing gold with a belief in seeking divine blessings. Investing in gold on Akshaya Tritiya is believed to bring prosperity that aligns traditional beliefs with financial decisions.
  As per Hindu mythologies, Akshaya Tritya is the day when Sudama, Lord Krishna’s childhood friend, visited him and offered him rice. In exchange, Lord Krishna blessed him with wealth. This day is also considered auspicious because it is believed that the holy river Ganga came down to earth on this day.
• Impressive Returns: Gold investments usually come with impressive returns. For instance, let’s take the example of gold prices in May 2024, which were around ₹73,000 per 10g for 24 carat gold. Jump to 11 months later, the gold prices crossed ₹96,000, which showed a jump of 31% in returns.
• Diverse Investment Instrument: This Akshaya Tritiya, Indians have the option of choosing different types of gold investments rather than sticking to just physical gold. For instance, digital gold, gold bonds, and gold funds usually come with impressive returns and are super easy to invest in.

Is Gold Safer than Other Investment Options?

Remember that when choosing an investment option, the first consideration you must bear in mind is aligning your investment with your financial goals. That being said, since Akshaya Tritiya is around the corner, you might be wondering if it is safe to buy gold on Akshaya Tritiya compared to other investments.

Let’s see why many believe that gold is a safe option when compared to other options:

• Link to the US Dollar: Most gold worldwide is priced in US dollars. Because of this, the strength of the dollar can affect gold’s price. If the US dollar weakens compared to other major currencies, the price of gold (in US dollars) tends to go up. This is because it takes more dollars to buy the same amount of gold. The opposite can also happen if the dollar gets stronger.
• Protection Against Inflation: Many people view gold as a way to protect the value of their savings during times of inflation. They believe that gold, being a physical asset people have valued for centuries, might hold its value better or even increase.
• ‘Safe Place’ During Uncertain Times: During periods of global uncertainty, like major political disagreements, economic worries, or international conflicts, investors often get nervous about potentially riskier investments, such as the stock market. In these situations, “safe-haven” assets, such as gold, have historically been a popular choice.

Risk of Investing in Gold on Akshaya Tritiya

Although gold is regarded as a safe haven asset, it is not completely risk-free. So if you’re planning to invest in gold on Akshaya Tritiya, there are certain risks you must bear in mind:

• Price Volatility: Gold prices are closely linked to global economic events, inflation trends, and currency movements that can trigger price volatility. Around Akshaya Tritiya, since there is a hype about gold investment, the prices might see a boom initially, but can fall shortly after the festive hype ends.
• Emotional Buying: Gold investments on Akshaya Tritiya have become a prevailing trend in India that might lead to emotional purchasing irrespective of personal risk tolerance and financial goals.
• Liquidity Risk: When it comes to investing in physical gold, liquidity comes with certain risks. This is simply because selling physical gold or jewellery is subject to deduction of making charges, buyback policies, purity verification, etc.

Should You Consider Gold for Safe Investing in 2025?

Considering gold for safe investing in 2025 depends on your financial goals, risk appetite and the overall market condition. Here’s a list of certain considerations that you can evaluate to make a smart decision:

• Know your Financial Goals and Risk Tolerance: Before you decide to invest in gold, make sure that you have a clear picture of your financial goals and an evaluation of your risk tolerance. Your financial goals must align with gold investment, regardless of the type of investment instrument.
• Impressive Long-Term Returns: If gold investments align with your financial goals, consider them, as they typically offer impressive long-term returns.
• Facilitates Portfolio Diversification: Today, gold investment involves not only purchasing physical gold but also exploring options like gold funds, gold ETFs, gold bonds, etc. So, if you are wary of the concerns associated with purchasing physical gold, then gold investment instruments are worth exploring as they typically offer the same returns as physical gold.

Conclusion

Gold investments have become more than just purchasing jewellery. They are a smart investment decision. For Akshaya Tritiya gold purchase 2025 plans, if you wish to follow a more modern, convenient, and pocket-friendly way to invest in gold, you can explore options like gold mutual funds, gold ETFs or exchange-traded funds, or digital gold. However, make sure to perform due diligence before making any investment decisions.