Should you buy and invest in gold this Akshaya Tritiya?

Should you buy gold this Akshaya Tritiya in April-1015Should you buy and invest in gold this Akshaya Tritiya?

Gold lovers are looking for auspicious day Akshaya Tritiya on 21st April to buy gold or gold jewelry. As an investor, you might be wondering, what should you do now? Gold jewelers are now offering huge discounts on wastage and making charges. Should you buy and invest in gold this Akshaya Tritiya? While you may wonder whether gold saving schemes would really benefit you, what are the some of the facts that would influence your decision if you are an investor?

How gold price is getting affected during Akshaya Tritiya?

While buying gold on Akshaya Tritiya is good, but as an investor, you might be thinking how gold prices are fluctuating during that time. See below table on how gold prices are affected during the 1 week after Akshaya Tritiya and 1 month after Akshaya Tritiya. What do you see here? You saw that last year, gold prices have fallen to 10% after Akshaya Tritiya. However, only 1% fall in prices after 1 week.

Also Read: What are various ways to check purity of gold Jewellery?

Last 10 years Gold Prices Trend during Akshaya Tritiya

Important Facts about gold prices during Akshaya Tritiya in last 10 years

  • Last year, 1 month after Akshaya Tritiya, gold prices fallen to 10%. In the last 10 years, it was third time where gold prices fallen after Akshaya Tritiya. Otherwise, no major negative side.
  • You should know that you cannot make money by buying gold before Akshaya Tritya and selling after it as no major changes in prices are noted.
  • Domestic gold prices follow international prices and local demand and  supply of gold would have less impact. Currently gold is trading at Rs 26,800 /  10 grams for 24 Carat gold and internal prices are $ 1,207 / ounce.

What are the factors which would influence gold prices in future?

  • Though US Dollar have gained in last few weeks, gold prices are still at the bottom.
  • Last week, Federal’s meeting in US indicate that rate hike is expected in early June, 2015. US dollar is expected to be stronger in coming months, which would take gold prices up.
  • World’s largest gold backed exchange fund, SPDR Gold Trust has seen some drop in holdings in the last few weeks. Investors may pull some more money in coming weeks from gold ETF’s. This may pull gold prices down.
  • US Data like retail sales, industrial production, jobless claims and consumer price index are expected this week. This would influence bullion trader's strategy on whether to buy more gold or sell gold. This would influence international gold prices.

Also Read: Gold Mutual Funds Vs Gold ETF's – Which are better investment options?

Conclusion: Gold prices are responding positively now. With some of the factors indicated above, gold prices may increase. Even technical chart shows positive trend in gold price. If this strong trend continues, I am sure gold prices may increase in future. If you are gold lover and want to buy for jewelry, forget about all these things and just buy them on this auspicious day. If you are an investor, keep buying them through gold ETF’s every month or invest in physical gold every month through some jeweler. This way you need not worry about gold price flucutations.

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Should you buy and invest in gold this Akshaya Tritiya


  • Parimala

    Great article!

  • Loyit Mathew

    Hi Suresh,

    Good article.

    One clarification. Interested to know more about Gold ETF. Is it working the same way like Equity MF? ie if i put every month Rs5000 in a Gold ETF, the alloted units = 5000/ per gram cost?? is it correct?

    Also please sugest some good Gold ETF plans for 10-15 years investment..

    Thanks & Regards,

    • Yes Loyit. However Gold ETF’s are traded on stock exchange and you can sell them any day. Gold ETF’s track international godl prices, hence comparison with local prices is not correct. You can invest in SBI Gold ETF or Kotak Gold ETF

  • Satya

    Hi Suresh,
    How about buying Gold mutual fund for long term? Will this be a good investment for future?


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