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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Akshay Tritiya and Gold

As Akshay Tritiya arrives, gold once again takes centre stage in Indian households. For generations, buying gold on this auspicious day has been considered a symbol of prosperity, purity, and good fortune. It is not just a purchase. It is an emotion, a blessing, and a tradition passed from one generation to another. But beyond tradition, gold also carries an important financial lesson. Gold is not just jewellery. It is an asset. Gold During Uncertain Times Over the years, gold has proved its...

Akshay Tritiya and Gold

As Akshay Tritiya arrives, gold once again takes centre stage in Indian households. For generations, buying gold on this auspicious day has been considered a symbol of prosperity, purity, and good fortune. It is not just a purchase. It is an emotion, a blessing, and a tradition passed from one generation to another. But beyond tradition, gold also carries an important financial lesson. Gold is not just jewellery. It is an asset. Gold During Uncertain Times Over the years, gold has proved its worth not only during festivals, but also during uncertain times. Whenever the world faces wars, inflation, currency weakness, economic slowdown, or financial panic, investors across the globe look at gold as a safe haven. This is because gold has a unique quality. It is trusted across countries, cultures, and generations. It does not depend on the promise of one government, one company, or one currency. Why Gold Holds Value Unlike paper currency, gold cannot be printed endlessly. Unlike businesses, it does not depend on profits or management quality. Unlike real estate, it is globally accepted and easily valued. This is why gold continues to remain one of the oldest and most respected stores of value. It has survived centuries of change, economic cycles, wars, and financial crises. The Right Role in Your Portfolio That said, gold should not be treated as a shortcut to wealth creation. Equities and equity mutual funds still remain essential for long-term growth. Gold plays a different role. It brings balance, stability, and protection to your portfolio. When equity markets are volatile or global uncertainty rises, gold often provides comfort. A sensible allocation of around 10-20% to gold can help reduce overall portfolio risk.  So basically, while stocks and equity mutual funds play the lead role in your long-term financial goals, gold plays the supporting but essential role. Physical Gold Has Limitations However, the way you invest in gold matters. Buying physical gold during festivals may feel emotionally satisfying, but it comes with practical challenges. There are making charges, purity concerns, storage issues, risk of theft, and liquidity problems. A necklace may be beautiful, but you cannot easily sell only a small portion of it when you need money. Also, when gold is bought as jewellery, the investor often forgets to calculate the actual return after making charges and deductions. Smarter Ways to Invest This is where Gold Mutual Funds and Gold ETFs become useful. They allow you to invest in gold without worrying about lockers, purity, theft, or storage. You can invest flexible amounts, start SIPs, track value easily, and redeem conveniently when required. For investors who want gold as part of their financial plan, these options are far more practical than buying jewellery purely as an investment. Tradition with Financial Clarity Akshay Tritiya is a beautiful reminder that wealth should be built with faith, patience, and clarity. Buying gold is auspicious, but buying it in the right form is financially wise. This Akshay Tritiya, celebrate tradition - but also upgrade your financial thinking. Because true prosperity is not just about owning gold. It is about owning it smartly. (The writer is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

Omar welcomes Indus Water Treaty suspension, calls it “most unfair document” for J&K



SRINAGAR: Jammu and Kashmir Chief Minister Omar Abdullah on Friday welcomed the Central government’s decision to suspend the 1960 Indus Waters Treaty (IWT) with Pakistan following the deadly Pahalgam attack that claimed 26 lives. He also referred to the treaty as the “most unfair document” for the people of J&K.


“The Government of India has taken some steps. As far as Jammu and Kashmir is concerned, let’s be honest. We have never been in favour of the Indus Waters Treaty. We have always believed it to be the most unfair document to people of J&K,” Abdullah told reporters in Srinagar after meeting representatives from the tourism, trade, and industry sectors. However, he noted that the long-term impact of this move is still uncertain.


The IWT suspension is part of India’s response to the brutal attack. Other actions include expelling Pakistani military attaches and shutting down the Attari land-transit point immediately.


When questioned about the impact of the April 22 attack on the region’s tourism industry, Abdullah dismissed concerns about monetary losses. “At this juncture, we are not counting rupees or paisa. Not one of the businessmen or stakeholders in the tourism industry who attended the meeting lamented the loss of business. Not one of them expressed any concern about what would happen to them.”


“Right now, our priority is to express solidarity with the bereaved,” he said, adding, “At some point in future, we may sit down to discuss the financial implications (of the attack) on J&K’s economy. But not a single stakeholder present in the meeting raised a demand for monetary relief for the losses they are suffering.”


Omar described the tourist exodus from J&K after the massacre as “heartbreaking”. The future of the Valley’s tourism sector remains uncertain, with widespread trip cancellations following the attack.

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