Akshaya Tritiya, celebrated as an auspicious day to invest in gold, often sees a surge in gold purchases across India. But in 2025, with gold prices touching all-time highs, the big question for investors and buyers alike is: Is it wise to buy gold this Akshaya Tritiya?
Let's look at historical returns, market dynamics, and strategic considerations before you make that decision.
Over the last 20 years, gold has delivered approx.15% CAGR, which is quite robust, especially in comparison with many fixed-income instruments and even some equity segments during market volatility. Gold has also acted as a hedge against inflation, currency depreciation, and geopolitical uncertainties.
Why Gold Has Performed Well
Several factors have supported gold prices in recent years:
- Geopolitical tensions: Russia-Ukraine war, Israel-Palestine unrest, and US-China trade concerns.
- Inflation worries: Gold is a traditional inflation hedge.
- Global economic uncertainty: Fears of a recession and a weak global economic outlook.
- Central bank buying: Many countries, including India and China, have increased gold reserves.
- Currency depreciation: The weakening of the Indian Rupee against the US Dollar added to local gold price inflation.
Why You Should Consider Buying
- Tradition with benefits: Buying gold on Akshaya Tritiya is culturally symbolic and has proven profitable historically.
- Diversification: Gold acts as a portfolio stabilizer, especially during market downturns.
- Returns remain promising: With global uncertainties continuing and rate cuts expected in the US, gold may remain supported in the near term.
- Demand for digital and investment-grade gold is rising: More buyers are shifting toward efficient, value-oriented gold investments.
Caution Due to High Prices
- Gold prices are near historical highs (₹96,000 per 10 grams), so bulk buying may not be advisable.
- A correction could occur if:
o US-China tensions ease.
o Interest rates rise unexpectedly.
o Investors shift their focus back to risk assets like equities.
Smart Buying Strategy for 2025
Buy with a measured and strategic approach:
- Avoid large lump sum purchases: Instead, opt for staggered buying or SIPs in gold digital gold or ETFs.
- Use Akshaya Tritiya as an entry point: Start small with Augmont Digital Gold or gold mutual funds.
- Buy coins or smaller jewellery pieces: Avoid heavy making charges; focus on purity and resale value.
- Think long term: If you’re buying gold as an asset, not just a purchase, stay invested for 3–5 years.
Final Word
Akshaya Tritiya 2025 presents an opportunity to align tradition with smart investing. While prices are high, gold’s long-term track record, safe-haven status, and cultural relevance make it a viable addition to your portfolio. Just remember to balance emotional purchases with financial prudence—and consider buying in forms that add both value and flexibility.
In short: Yes, buy gold—but buy smart.
For a better risk-adjusted return portfolio, it is always advised to allocate at least 15-20% of the portfolio amount into Gold and Silver divided equally. The best way to start or stay invested in gold systematically is through Augmont Digital Gold SIP for better returns.