Akshaya Tritiya, a festival symbolizing prosperity, is here again, and with it comes the customary tradition of purchasing gold. This annual celebration marks a time when many believe that buying gold will bring wealth and a secure future.
In recent times, alongside the customary purchase of physical gold jewellery, the option of investing in digital gold has also become available. Several fintech platforms now provide the option of buying digital gold, offering an alternative to traditional gold purchases. This includes options such as Sovereign Gold Bonds, Gold ETFs, and Gold FOFs, where the option to purchase digital gold, starting from as little as Rs 1, is available.
To Invest or Adorn: The Dilemma of Akshaya Tritiya
So, the question arises if you should invest in digital gold or stick with the timeless allure of gold jewellery, this Akshaya Tritiya? Investing in digital gold can serve as a stable hedge against inflation and market fluctuations. It offers the same benefits as physical gold but without the additional expenses. Market expert Dr. Ravi Singh told Business Today that investing in digital gold provides an alternative to traditional gold jewellery as it offers a convenient and secure way to avoid storage costs and the risk of theft. “Transactions occur at market prices, ensuring fairness. Sovereign gold bonds, with a fixed annual interest rate of 2.5%, add to its appeal,” said Singh.
However, Shivam Batra, CEO of Rajni Jewellers had a slightly different opinion and said that digital gold may suit individuals lacking storage options or with short-term investment goals. “For those seeking enduring jewellery pieces that can be cherished for years, quality, handcrafted gold jewellery is unmatched,” he said.
“In India, gold signifies more than just an investment; it embodies our cultural heritage. It has always represented prosperity and tradition. Despite this year’s rapid price increases, it’s crucial to view this positively. The rise in prices reflects not only market conditions but also the inherent value of gold as a tangible, enduring asset,” Piyush Gupta, director at PP Jewellers by Pawan Gupta told Business Today.
The Choice is Yours
Ultimately, the choice between digital gold and gold jewellery hinges on individual needs and preferences. For Akshaya Tritiya, your decision will depend on your investment horizon, risk tolerance, and desire for a physical asset. Digital gold offers ease of purchase, storage, and potentially lower costs, while jewellery provides the tangible satisfaction of owning a physical piece.