Akshaya Tritiya, also known as Akti or Akha Teej, is an annual Hindu and Jain spring festival. It falls on the third of the bright half of Vaisakha month. Hindus and Jains observe it as an auspicious day, as it signifies the third day of unending prosperity. Buying gold on this day is a tradition, as worshipping Lord Kuber this day is believed to bring prosperity
Prices of gold and silver are trading near their record highs. According to India Bullion and Jewellers Association (IBJA), the 24-carat yellow metal settled at Rs 60,616 per 10 grams on Thursday. Silver ended the session just below Rs 75,500 per kg. Gold has risen about Rs 5,000 per cent per 10 grams, while silver has soared about Rs 13,000 per kg in the last 50 days
Gold and silver have generated over 12% CAGR returns in the last 20 years. Gold prices rose 15% in FY 2022-23 and 20% from the last year 2022 Akshaya Tritiya. Gold prices have given phenomenal returns in the last 20 years by rising more than 10 times from Rs 5800 per 10 grams
Market analysts believe the party is not over for precious metals and that prices of precious metal counters are likely to move higher in coming years. They suggest investors allocate a decent amount to this space to reap benefits of portfolio diversification and hedge themselves against market volatility
Gold, which is considered to be a hedge against inflation, generally outperforms silver in phases of an economic downturn. Majority of gold demand comes from the jewellery sector, investment and central bank buying. On the other hand, once the economy starts picking up or whenever there on a rise, industrial demand for silver picks up and it does well
A stronger dollar has weighed gold and silver prices of late. Analysts said the precious metal space looks attractive from the point of view of portfolio diversification and hedging
Deteriorating global growth and a looming recession in the West only boosts the yellow metal’s appeal during this Akshaya Tritiya, said Ravindra V Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities. Sachin Kothari, Director of Augmont expects the safe haven metal to outperform in FY24. For a recession-proof portfolio, one should allocate at least 20 per cent portfolio to Gold and Silver which can be put via SIP or lumpsum or a mixed strategy
Talking about the returns, in a span of 5-10 years, gold can be an outstanding investment choice, despite many claiming it to be outdated. What one needs to consider are one’s own priorities. In today’s age, there is more than one way to invest in gold- Physical gold, Digital gold and Sovereign Gold bonds, said Mohd Abutarab A. Shaikh, Market Analyst at Vantage
There is an increasing interest in investing and trading. Plus, the generic troubles of physical gold might not make it more attractive to alternatives like digital gold and SGBs, which provide a fixed return every year. However, unattractive 2.5% interest rate of SGB may shift investors towards digital gold, anlaysts said