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Tata Capital > Blog > Wealth Services > Why Festive Season Is The Best Time To Invest In Gold?

Wealth Services

Why Festive Season Is The Best Time To Invest In Gold?

Why Festive Season Is The Best Time To Invest In Gold?

Which is that singular investment that has stood the test of time? The answer is gold. For centuries, this precious metal has been the perfect investment avenue for countless people. Even today, when you talk about things that register intense value appreciation, gold is one of the first things that comes to mind.

Buying gold is never a bad idea, but it does cost quite a bit, especially if you opt for physical gold. But what if you could buy gold jewellery at discounted prices? This is possible during the festive season. Purchasing gold ornaments around festivals is considered not only auspicious but also profitable these days due to the following reasons.

1. Hefty Discounts by gold Merchants

Several Indians purchase gold ornaments during Dhanteras, Dusshera and Diwali. To further capitalize on their gold-buying spirit, many top jewellers around the country extend heavy discounts on gold jewellery-making charges.

Such hefty discounts will bring your physical gold prices close to digital gold prices, with the added benefit of being able to adorn ornaments during the festive season – something not possible with digital gold.

But this does not mean you shouldn't invest in digital gold during the festive season. On festive occasions, you might find certain merchants providing a small discount per gram on overall gold prices. Therefore, your gold purchases can be a mix of both physical and digital gold during the festivities.

2. Excellent Gifting Option

 Exchanging gifts is a common and much-loved practice during the festive season. And gold makes for the perfect gift. Not only is it auspicious, but with countless gold jewellery designs flooding the market these days, you’ll find pieces that suit all ages and pockets. 

Many individuals have also initiated the practice of purchasing digital gold and gifting its invoice instead of giving hard cash inside envelopes. This practice is especially popular with elders giving gifts as blessings to younger people.

3. Lends Portfolio Stability

Gold has negative correlation with equity and with debt it has near zero correlation. In essence, it exists within its own league. Therefore, it is free from equity / debt market fluctuations. Such an asset provides immense stability to your financial portfolio.

In fact, if you have a significant amount invested in digital or physical gold, you can take bigger risks by investing in other high-yield market instruments. So, if you don’t already have gold in your financial portfolio, this festive season is the right time to start investing in it.  

4. Steady Appreciation Throughout

Gold prices have skyrocketed from Rs. 16.75 to around Rs. 5000 per gram over the last five decades. Only selective asset classes promise this level of appreciation. So, even if this is not reason enough to purchase gold this festive season, it is definitely reason enough to invest in this metal as soon as possible. The added upside, as mentioned above, is that you perhaps will receive discounts should you buy gold during the festive season, which is already upon us.

Remember, a robust financial portfolio is all about striking a balance between safety and risk. Gold is responsible for the safety bit. 

5. Helps You Stay Liquid

If not right away, then perhaps within a couple of years, you can sell off your digital or physical gold to cover any big-ticket purchases. And you can do this instantly, especially with digital gold. Even physical gold can be sold quickly to earn a significant sum.

The money earned can be used to celebrate festivities in a grand manner. Simply put, gold is the ever-appreciating equivalent of liquid cash.

In the End

The festive season is indeed a fantastic time to purchase gold both physically and digitally. Although, the digital gold route lends more flexibility than physical gold, as you don't need to worry about its storage. Also, you can purchase any form of digital gold through sovereign gold bonds or gold mutual funds or gold ETF Or you can buy it off any relevant portal for as low as Re 1.

Want further assistance on purchasing digital gold or any other financial instrument? If yes, then turn to Tata Capital Wealth. Our experts can help you assess and apply for the right instruments that help multiply your wealth.

For more information, reach out to us today!

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