Akshaya Tritiya 2024: Rituals, significance and investments

Akshaya Tritiya is the festival of gold. But, have you wondered what is the history behind it? Here’s what you should know!

Do you belong to one of those regular Indian families who wait for Akshaya Tritiya to buy gold? If yes, you must have surely wondered what the connection is between Akshaya Tritiya and gold!

In today’s article, let us understand how the two are connected, the significance of Akshaya Tritiya and some lucrative ways to invest in gold in 2024.

The gold market in India

In India, Akshaya Tritiya is almost synonymous with gold. So, before we dive into the significance of the festival, let us try to decode the sentiments behind India’s love for gold.

India is the second largest consumer of gold globally, behind China. Despite the rising prices of gold, consumers have been keen on gold investments, and the demand is constantly rising, too.

According to the World Gold Council’s report, the demand for gold in India in the first quarter of 2024 has reached 136.6 tonnes, as against 126.3% in Q1 of 2023. The increase of 8% amidst soaring prices shows how gold is considered a haven for investments among Indian consumers. Besides investments, gold in the form of bars, coins and jewellery has a prominent role in India’s traditions and emotions. 

Source: World Gold Council

Like India, the global demand for gold is rising, too. According to the World Gold Council, there is a 3% Y-o-Y increase in gold’s global demand, reaching 1,238 tonnes in Q1 2024.

Coming to the supply to meet the rising demand, India is a net importer of gold. India’s gold imports in February 2024 saw an annual increase of 134%, reaching $6.1 billion in value, the highest since October 2023.

Source: World Gold Council

Gold: A safe haven for investors

While the stats clearly show that gold is among the most preferred investments for consumers, let us now delve into why gold is considered so.

• Given its physical properties, gold’s value is more stable than other investments like currencies.
• The prominent role of gold in history, where it was treated as a currency and depicted wealth, is one of the reasons behind gold’s prestigious status.
• Gold is known for its hedging capabilities against inflation. Unlike currencies whose value falls during inflation, gold retains its value, making it a safe investment option during economic crises.
• Unlike stocks, bonds and currencies, gold’s value does not fluctuate rapidly. Hence, investing a portion of funds in gold allows investors to hold a diverse portfolio and helps compensate for the loss that investors may incur in other assets.

The significance of Akshaya Tritiya

Now that we have understood an investor’s perspective on gold, let us move on to learn the sentiments behind investing in it on the day of Akshaya Tritiya.

“Akshaya” means prosperity and success, and “Tritiya” means the third day in Sanskrit. Akshaya Tritiya is a festival celebrated by Hindus and Jains on the third lunar day of the Vaishaka month, as per the Hindu calendar.  

As per Hindu Puranas, the significance of Akshaya Tritiya goes back to the Mahabharata era. During the Pandava’s exile in the forest, they were presented with the Akshaya Patra on this day, which would be filled with food. Besides, this day also has connections to the Tretayug, where Parashuram, the sixth avatar of Lord Vishnu, was born. While Hindus believe this to be the festival’s origin, Jains believe that Akshaya Tritiya is an event to celebrate the break of the one-year-long fast of their Theertankar Rishabhanatha.

Among the various rituals, buying gold on the day of Akshaya Tritiya is one of them, and is believed to bring fortune and endless wealth. With the hope of bringing in luck and fortune, many Indian households invest in gold, either in the form of ornaments, coins or bars. 

Akshaya Tritiya 2024

Akshaya Tritiya 2024 falls on the 10th of May, Friday. According to the Hindu Panchang, the Tritiya begins at 4.17 AM on 10.05.2024 and ends at 2.50 AM on 11.05.2024.

Buying gold this Akshaya Tritiya

So, do you want to buy gold this Akshaya Tritiya? If yes, here are some unique ways of doing so besides the usual physical gold.

Well, investing in gold in the form of ornaments, coins, and bars is undoubtedly one of the most preferred ways. While they bring in the joy of owning physical gold, the associated costs are often high due to additional charges like making costs, GST, storage costs, etc. Jewellery designs are also prone to obsolescence.

To avoid these consequences, here are some other ways of investing in gold:

• Gold ETFs: Gold ETFs are exchange-traded funds that track the value of gold. Investors can invest in them on the stock exchange without holding physical gold. Each unit of the ETF represents 1 gram of gold, and the value of the investment varies as per gold’s market rate. Examples of Gold ETFs in India are Aditya BSL Gold ETF, Axisgold, SBI ETF Gold, etc.
  
• Gold stocks: Investors can invest in stocks of public limited companies that operate in the gold industry. The value of such stocks varies according to the market price of gold, which gives investors joint exposure to gold and stocks.
  
• Gold futures and options: Commodities are one of the significant underliers in the derivative market. Entering futures and options contracts with gold as the underlier helps investors benefit from gold price fluctuations without taking the risk of possessing physical gold.
  
• Gold bonds: In India, gold bonds are called Sovereign Gold Bonds. The Government of India issues them to provide investors with an alternative to physical gold. Each bond links to certain grams of gold, whose prices directly depend on the market price of gold. Investing in SGBs gives investors the benefit of regular bonds, such as fixed interest payments, less risk, stability, etc.
  
• Digital gold: Digital gold is a unique investment opportunity in the gold market. It is where banks and fintech platforms allow investors to buy gold in small amounts, even a fraction of a gram, which is usually not possible in the case of physical gold. While these platforms possess physical gold, they give investors digital ownership in the form of online certificates.

Bottomline

Akshaya Tritiya is just around the corner. So, if you are contemplating investments, this is the time for you. The evolving financial market has multiple opportunities for gold investments, apart from the regular way of investing in jewellery.

So, make sure you explore each of their pros and cons before you decide to invest. Happy Akshaya Tritiya and happy investing!

DISCLAIMER: This article is not meant to be giving financial advice. Please seek a registered financial advisor for any investments.