Why Should You Invest in Gold This Dhanteras?

The festive season is around the corner and it is also the perfect time to invest in gold. Gold has since time immemorial been a symbol of wealth, auspicious metal, and a hedge against economic uncertainties. Even today, gold continues to shine as a reliable asset, offering stability and security to investors, making it one of the most sought-after metals during the festive season. So, in this blog let us discuss some of the reasons why you should invest in gold this Dhanteras. 

What is the Importance of Dhanteras?

Dhanteras is a significant Hindu festival celebrated with great fervour. It is celebrated on the 13th day of the Ashwin month and the date for Dhanteras 2023 is 10th November. The goddess of wealth, Goddess Laxmi is worshipped on this day and marks the auspicious occasion for wealth and prosperity. On this day, people buy gold jewellery, gold coins, and other forms of gold to welcome Goddess Laxmi into their homes. In addition to buying gold, people also decorate their homes with lights and clean their houses. So, this Dhanteras whether you seek to multiply your wealth with gold investment, diversify your investment portfolio, or honour the tradition of welcoming Goddess Laxmi, buying gold this Dhanteras surely becomes important.

5 Reasons Why You Should Invest in Gold this Diwali/Dhanteras

Listed below are a few reasons why investing in gold this Dhanteras is auspicious:

• Honour the Age-old Tradition

One of the most important reasons why you should buy gold this Diwali is to honour the age-old tradition. According to legends, during a visit to earth Goddess Laxmi did not pay heed to Lord Vishnu’s orders and fell for earthly temptations. She was thus punished to work in the fields of a farmer for 12 years and after the completion of these years, the farmer refused to let her go. She thus revealed herself and promised the farmer to come every year on the day of Dhanteras. She also advised the farmer to decorate the house with lights so that she could be guided. Thus, to value this old-age tradition, every year on the occasion of Diwali people decorate their houses and buy gold ornaments.

• Protection Against Inflation

Inflation is one of the major factors that prevent investors from making a decision. However, gold is considered one of the safest investment options and even acts as a hedge against inflation. Gold serves as a reliable hedge against inflation by preserving its intrinsic value when the purchasing power of paper currencies declines. Its value tends to appreciate during inflationary periods, safeguarding wealth and providing a safe haven. 

• Liquidity

Liquidity means the flexibility with which you can sell a financial asset. Gold offers this liquidity feature to investors as it can be sold with ease. As gold has liquidity, it can easily be sold for the exchange of cash value. Moreover, selling gold also does not require technical knowledge unlike stocks and other financial assets. This means that just with the knowledge of gold current price, you can sell gold and acquire cash during an emergency.

• Loan Collateral

Gold also serves as a loan collateral as there are a number of banks in India that easily provides loan if you possess any form of gold. It is the reliability of gold as a financial instrument that makes it favourable for lenders to keep gold as a loan collateral. 

• Easy to Regulate

Unlike stocks and other gold schemes where the rates keep fluctuating depending on the market scenario, gold is very easy to maintain. You just need to have a bank locker to ensure gold’s safety. Furthermore, it requires very little technical knowledge, almost every Indin prefer buying gold during Dhanteras and at other times.

Different Ways to Invest in Gold

In today’s time, you can invest in both digital and physical gold. To help you out we have enlisted some of the best ways to invest in gold this Dhanteras 2023:

1. Physical Gold

Purchasing physical gold in the form of coins, bars, or jewellery is one of the most common ways. However, it is important to note that gold jewellery may be very purposeful, yet it has made charges involved which often increase its cost. Many people buy gold coins and gold jewellery during Dhanteras.

2. Gold ETFs (Exchange-Traded Funds)

Buying gold online has now become a common trend and investing in Gold ETF is one of them. Gold ETFs or Gold Exchange Traded Funds are another great way in which you can start your gold investment journey. They offer liquidity and can be traded on stock exchanges.

3. Gold Sovereign Bonds

Some governments issue sovereign gold bonds that offer fixed interest rates and the option to redeem the bond for physical gold at maturity. It is issued by the Reserve Bank of India on behalf of the government of India. As these are backed by the government, it is a safe option for investors and a popular way of digital gold investment. 

4. Gold Mutual Funds

Gold Mutual funds are another safe way in which you can start your investment journey this Dhanteras. It is issued by the Securities and Exchange Board of India or SEBI and is regularly regulated by them. 

Tips to Buy Gold During Dhanteras 2023

There can be no better time than buying gold during Dhanteras2023. However, when you do so, you need to be aware of several things such as those listed below:

• Purity

First and foremost, you need to check the purity of gold. Its purity is measured in karats and it is ideal to buy gold which has a purity of 22 karats. You can also check the BIS hallmark which is on the back side of the jewellery to understand whether it’s pure or not. BIS Hallmark symbols are important to check to be sure that you are buying pure gold from an authorised dealer.

• Gold Rate

Another important thing that you must check before heading out to buy gold this Diwali is the gold rate. The cost of gold today, varies from one Indian city to another, thus it becomes important to check its price before buying it. Moreover, during the festive season, many jewellers offer discounts on gold price to lure the attention of potential buyers. No matter what discounts you are getting, you should still be aware of the gold rate today.

• Buying-back Policy

If you are buying gold jewellery or gold coins, you must always check the buying-back policy with your dealer. It is always ideal to check this so that during times of need, you can re-sell your gold possession and acquire wealth to fund immediate needs. 

• Making Charges

Many dealers levy a huge making charge on gold jewellery. Making charges are basically the amount that is spent on the production of gold items. The making charges thus increase the overall cost of the gold, thus be wary of this charge while buying gold in Dhanteras.

• Ask for a Bill

Last but not least, it is very important that you request a detailed bill or receipt for your purchase. This bill will give you detailed information on the gold's weight, purity, and price, making charges, and others. Moreover, a bill is an indication of the credibility of the dealer.

Take Away

Thus, there can be no better time than buying gold this festive season. With an array of options available when it comes to buying gold, it gives all the more reasons to choose over other financial assets this Dhanteras. In addition to gold, you can also buy investment plans to secure your future. Team InsuranceDekho wishes you a happy Dhanteras and Diwali.