Gold! Gold! Gold! Akshaya Tritiya is a cherished spring festival observed by Hindu and Jain communities across India. Among its customs, purchasing precious assets, particularly gold, holds profound cultural significance. However, the traditional practice of acquiring physical gold on this auspicious day is transforming with the advent of new avenues for gold investment. In recent years, the landscape of gold investment has evolved significantly, offering individuals a plethora of options beyond traditional gold jewellery and coins. Sovereign gold bonds (SGBs), gold exchange-traded funds (ETFs), and gold mutual funds have emerged as attractive alternatives, reshaping the way people approach investing in gold. Ganesh Balakrishnan, Co-Founder of Aurm, an asset protection firm, sheds light on the factors influencing the decision-making process between purchasing physical gold and investing in digital gold.
What to Choose? Physical Gold or Digital Gold
Buying digital gold is primarily an investment decision while traditional gold jewellery extends beyond mere financial considerations. Traditional gold gives the joyous experience of purchasing gold jewellery on Akshaya Tritiya. The sentimental value and utility of gold jewellery as ornaments for special occasions add depth to its significance, making it a meaningful gift for loved ones. Considering the current economic climate and market trends, Balakrishnan notes the uncertainty prevailing in global markets, with geopolitical conflicts and economic challenges impacting investment decisions. In such times, gold emerges as a haven, reflected in its all-time high prices.
In comparing digital gold with traditional gold, Balakrishnan underscores the advantages and disadvantages of each. While digital gold offers enhanced liquidity and convenience, traditional gold holds sentimental and inheritance value, making it an attractive long-term investment. The rise of digital gold purchasing reflects the evolving preferences of consumers, particularly the younger generation, who seek convenience and accessibility in their investment choices. This shift coincides with the rapid growth of the gold market in India, driven by increasing adoption of fintech platforms and growing awareness of gold as a viable investment option.
As Akshaya Tritiya continues to symbolize prosperity and good fortune, the evolving dynamics of gold investment underscore a broader shift towards embracing digital solutions while preserving cherished traditions. In this digital era, the age-old tradition of buying gold has adapted to meet the changing needs and preferences of modern society.