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Is Akshaya Tritiya an auspicious time to buy gold?

During the course of your daily life you make certain routine purchases and certain special purchases which are close to your heart. These may be luxurious items such as watches or certain long term investments such as a car or a scooter. No matter which religion you belong to , you would purchase them on certain special occasions or religious festivals. You would then have them blessed at religious places of worship. Don’t you have your new car or scooter purchased on an auspicious festival such as Ugadi blessed in the temple? Haven’t You Heard The Phrase Nothing Is More Powerful Than A Custom Or A Habit. Akshaya Triiya is a highly auspicious day which falls on the third lunar day from Amavayasya (New Moon) during the waxing phase of the moon. There are numerous legends associated with Akshaya Tritiya including one in which Sudama visits Lord Krishna with a bag of parched rice. His return back is one marked with a change in his fortune. Clearly this symbolizes a change in fortune brought about by a great amount of wealth symbolized by gold .Clearly we in India have a festival of Gold. On a lighter note I am proud of my Gold Watch .My Grandfather sold it to me on his deathbed. Here we come to know of the value of Gold. I would like to remind all of you that the team of financial planners at Moneymindz.com are always there for you to plan your financial needs in an efficient manner. You can explore this unique Free Advisory Service just by giving a missed call at 022 6211 6588.

Akshaya Tritiya A Windfall For Jewellers

Today is Akshaya Tritiya. This day is symbolized by long queues outside gold jewellery shops. This is a day in which all jewelers both big and small anticipate huge profits and give liberal discounts in order to make the maximum sales. This year we have a slump in Gold prices with gold hitting an eighteen month low last month .Clearly in our gold crazy nation this translates into a God sent opportunity .Currently the price of Gold is around INR 27000 per 10 g in the four main metro’s of our country. In the past year people purchased gold at values closer to INR 30000 per 10 g .People in India were expected to cut down their gold purchases this Akshaya Tritiya owing to a bearish sentiment prevailing in the gold market worldwide. But a confident buyer stated that I have been buying gold on all Akshaya Tritiya years and at much higher prices. So why should I postpone my purchases? .Clearly a sign of undying optimism while purchasing gold.

Gold As A Means Of Investment

Here in this season Gold is purchased mainly in the form of Gold coins. No Gold Jewelery here. Here people purchase gold coins and gold bars mainly as a means of investment. About 50% of all investment purchases are gold coins. Banks too cash in on this demand launching gold coins in various denominations. You might ask “Then What About Gold ETF’s ? .So far this trend has not caught on ,however in future we might see this form of investment take off too. Right now the trend has been the physical purchase of gold on auspicious seasons and no matter what the price of Gold is ,it will be a prime purchase in India.

Are You Blindly Superstitious
Gold Is A Hedge Against Inflation

In the world market the price of gold hit a record 850 Dollars an ounce owing to the start of rhe Soviet invasion of Afghanistan This was in .January 1980.About 2 years later in the month of March 1982 the price of Gold was about 320 Dollars per ounce .Here if a person purchased gold in the year 1980 he would have lost 85% of his purchasing power in the year 1982.Clearly gold is not a hedge against inflation in all situations…So does this mean I should not purchase Gold ?.No certainly not ,but have it around 10% of your portfolio. Whenever stocks and currency lose their value,when there is an oversupply of currency notes then Gold shines.

Is This The Right Time To Buy Gold

Gold after a series of rallies has finally seen a fall last month. This makes this Akshaya Tritiya slightly different from others before it. Commodity analysts predict a further fall in gold prices in the range of INR 25000 per 10 g. Technical analysts echo a bearish sentiment. Here this is not the right time to purchase gold .A wait for a few months particularly the season of Diwali is recommended for these gold purchases.

The Temptation Exists

In India the need exists for certain purchases to be snapped up at bargain rates. Gold is one of them. Gold is needed by brides for the wedding season. Parents purchase gold as dowry of their daughters. The need for gold is a persistent need in our country and is always purchased on a decline. A bargain is a bargain and one should not look a gift horse in the mouth. Gold bar supplies to Asia from Europe are running out. Britain has boosted output of Gold coins..USA is struggling with the supply of American Eagle Gold Coins . Clearly countries in the West are struggling to match demand from Malaysia, Thailand and India.

But Should You Invest In Gold On Akshaya Tritiya

  • One must desist from blind superstitution and purchase Gold not only because it is Akshaya Tritiya .Here if gold is purchased for investment purposes then its purpose should be served. Whenever gold can be got at a bargain rate it should be lapped up and the occasion considered auspicious.
  • Always use your own discretion while purchasing gold. Do not base your purchasing decisions on your financial advisers or blindly follow the mob.
  • Always strive to maintain your portfolio in gold to around 10%..If you already have the necessary percentages then blind investments just for the heck of it serves no purpose.
  • Stocks and shares are known to give stupendous returns compared to gold over a time frame of 10-20 years .Gold helps to preserve wealth.. But if you are looking for huge profits then you must surely consider Equity.

On This Auspicious Occasion Of Akshaya Tritiya Invest In Knowledge

Akshaya Tritiya is an auspicious season celebrated in the Northern parts of India .It was not practiced in Southern regions and is a recent custom in the South. This auspicious season triggers a gold rush every year irrespective of sound economic decisions. This has merely come to mean a blind purchase of Gold. This season let us consider an investment in knowledge which will give us better returns in the future. Gold is merely a thing of intrinsic beauty and aesthetic appeal.It does not fuel the economy or aid in industrial production unlike silver which has huge industrial applications. Gold thrives on fear.Downturn in the economy, The USA Subprime crisis, The European PIGS crisis all of these contribute to a rise in the price of Gold as these fuel fear of paper money in men. Here the logic is simple. As long as the uncertainties which are currently prevailing in our economy persist gold will have its say.It’s as simple as that. So use this unique opportunity to study and gather knowledge on gold.

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