Akshay Tritiya and Gold

As Akshay Tritiya approaches, the yellow metal is once again glittering in headlines - and this time, not just because of festive buying. Gold prices have hit an all-time high, trading above Rs 1,00,000 per 10 grams, reminding us that gold isn’t just auspicious - it’s also financially sound.

In the past decade, gold has offered impressive returns. From around Rs26,000 per 10 grams in 2015 to over Rs 1,00,000 today, gold has delivered phenomenal growth. For an asset known more for safety than aggression, gold has outperformed even aggressive asset classes over long holding periods.

So, while equities remain the backbone of long-term wealth creation, gold plays a complementary role - as a hedge against inflation, currency devaluation, and economic slumps. It adds much-needed stability to a portfolio, especially during global uncertainties.

Gold also acts as a geopolitical shock absorber. During wars, pandemics, or global financial meltdowns, investors across the world flock to gold as a safe haven. This universal trust makes it a reliable store of value - one that holds steady when most other assets are volatile.

Why does gold hold its value so well? Simply put, gold is the only true international currency. It isn’t tied to the fortunes of any one country. It doesn’t get printed or devalued. It’s been trusted across centuries - in every culture, and in every crisis.

That said, gold is not a smooth ride in the short term. It is a volatile asset, influenced by global interest rates, dollar movement, and geopolitical sentiment. That’s why the ideal approach is to allocate 10–15 per cent of your portfolio and stay invested consistently - rather than trying to time market highs or lows. It can be volatile in the short term, but gold prices tend to rise in the long term.

Also, how you invest in gold matters. Traditional gold buying during festivals may be sentimental, but physical gold comes with problems - risk of theft, storage issues, impurity, and partial liquidity. You can’t sell just one gram from a necklace.

The better route? Gold Mutual Funds and Exchange-Traded Funds (ETFs). They offer transparency, easy liquidity, and no storage or purity concerns. You can start small, invest regularly via SIPs, and even redeem conveniently.

This Akshay Tritiya, celebrate tradition - but invest with financial clarity.

Because true wealth isn’t just about buying gold - it is about buying it the right way.

(The author is a Chartered Accountant and CFA (USA). Financial Advisor.

Views personal. He could be reached on 9833133605.)