This Dhanteras, go for gold: Strong returns make it the festive choice

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Chaitanyesh
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This Dhanteras, go for gold: Strong returns make it the festive choice
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  • Gold has emerged as a top investment choice
  • It has been backed by impressive returns over the past year
  • Demand for gold traditionally spikes around Dhanteras

As the festive season begins with Dhanteras, gold has emerged as a top investment choice, backed by impressive returns over the past year. 

Since last Dhanteras, gold prices have surged nearly 30%, reaching around ₹80,000 per 10 grams. In 2024 alone, domestic gold prices have risen over 23%, far surpassing the Sensex’s approximate 11% growth in the same period.

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Several factors are driving gold’s appeal. Global economic uncertainties, persistent inflation, and fluctuating interest rates have contributed to its steady rise. Conflicts like the Ukraine-Russia crisis and recent geopolitical tensions in the Middle East have added to gold’s attractiveness as a safe-haven asset during volatile times. Central banks around the world are also likely to maintain softening interest rates, making gold a stable choice for long-term investors.

Demand for gold traditionally spikes around Dhanteras and the wedding season. Buying gold during this time is considered auspicious, with the metal symbolizing prosperity and security. Amid rising prices, many investors are drawn to gold’s role as a hedge against inflation and market instability, valuing its ability to hold value during economic downturns.

Experts suggest that Dhanteras is an ideal time to consider gold investments. Options like gold ETFs or Fund of Funds offer a practical way to invest, providing ease of access and liquidity without the storage concerns and costs associated with physical gold. These methods make it easier for investors to participate in gold's growth, particularly for long-term wealth building.

With geopolitical uncertainty and a potential softening of US interest rates, gold’s value is expected to grow. Analysts recommend allocating 5-10% of one’s portfolio to gold for added security. By investing in gold, individuals can balance cultural traditions with smart financial planning, ensuring stability and protection in uncertain economic times.

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