MUMBAI: With a consistent rise in gold prices in the past year, the yellow metal has given a return of 20% since Akshaya Tritiya. The yellow metal was trading at around Rs 50,800 per 10 gram in Akshaya Tritiya last year, which was celebrated on May 3. Now gold is trading at around Rs 60,255 per gram.
High prices have failed to dent the demand for the yellow metal and apart from buying physical gold, investors are also exploring new options such as gold Exchange Traded Funds (ETFs) and Sovereign Gold Bonds.
The sale of yellow metal rises on Akshaya Tritiya as it is considered buying gold is considered to be auspicious on this day. “Both physical gold and gold ETFs have their advantages and disadvantages. Though physical gold has a high emotional and cultural value, preferred during auspicious occasions, it also requires storage and safety arrangements, with concerns about its purity and making charges,” said Gopal Kavalireddi, head of research at Fyers.
“On the other hand, gold ETFs are convenient and cost-effective, as they trade on stock exchanges like any company’s share, without storage or safety concerns. Moreover, gold ETFs provide liquidity without any lock-in period or exit loads, making it an attractive investment option for short-term investors,” he added.
Gold price has risen in the last year mainly driven by global factors such as fears of a recession in the US and Europe. So far this year, it has gone up about 7.5% and is expected to rise further in the coming months.
High demand for gold
Rs 60,255: Current price of gold per 10 gram
Rs 50,800: Price of gold per 10 gram on Akshaya Tritiya in May 2022
Rs 61,371: All time high level touched by gold last week
Rs 50,800: Price of gold per 10 gram on Akshaya Tritiya in May 2022
Rs 60,255: Current price of gold per 10 gram
7.5%: Rise in the price of gold in 2023