Don’t just buy gold this Dhanteras, make it a thoughtful investment

Dhanteras, the day that marks the beginning of Diwali festivities, holds immense cultural and financial significance. It’s a day when families across India seek the blessings of Goddess Lakshmi, the goddess of wealth, for prosperity and well-being. Traditionally, buying gold on Dhanteras is seen as a way to invite wealth and positive energy into the home. However, beyond cultural and religious beliefs, there are strong financial reasons why gold continues to be an excellent investment on this auspicious day.

Gold, a symbol of wealth and financial security, has historically proven to be a stable and reliable investment, especially during times of economic uncertainty. Let’s explore why buying gold on Dhanteras 2024 could be an opportunity to strengthen your financial future and how to make the most of this auspicious occasion.

Why Is Dhanteras Auspicious?

Dhanteras, also known as Dhanatrayodashi, is celebrated on the 13th day of Krishna Paksha in the Hindu month of Kartik. The day derives its name from two Sanskrit words:Dhan meaning wealth andTeras referring to the 13th day. According to Hindu mythology, Dhanteras marks the day when Lord Dhanvantari, the physician of the gods, emerged from the ocean during the churning of the Kshira Sagara, carrying the elixir of life. Another popular legend tells the story of King Hima’s son, whose life was saved by his wife’s clever use of gold, light, and storytelling to distract the god of death.

These stories are deeply tied to themes of health, wealth, and protection, making Dhanteras an auspicious day to make significant financial decisions. In modern times, the act of buying gold on Dhanteras is considered a way to usher in good fortune, financial growth, and prosperity.

Why Should You Buy Gold on Dhanteras?

1. Cultural Significance Meets Financial Prudence: Gold purchases on Dhanteras aren’t just rooted in tradition, they also represent smart financial planning. Gold has been considered a "store of value" for centuries and is one of the few assets that performs well during economic downturns. For example, during the global financial crisis of 2008, while most assets depreciated, gold prices surged by over 25%, highlighting its importance as a safe-haven investment.
2. Long-Term Stability: Gold has historically held its value over time. Unlike currencies that can be devalued by inflation or market fluctuations, gold tends to appreciate or at least maintain its worth. According to the World Gold Council, gold prices have risen by an average of 10.6% annually over the past decade in India, making it a strong contender for long-term wealth preservation.
3. Diversification of Investment Portfolio: Gold is a non-correlated asset, meaning it moves independently of stocks and bonds. This makes it an essential part of a diversified investment portfolio. In 2023, as global markets saw volatility due to inflationary pressures and geopolitical tensions, gold once again proved its mettle by providing a cushion for investors.
4. Hedge Against Inflation: India has historically experienced periods of high inflation, and gold has consistently outperformed during such times. Over the past 20 years, gold has provided an average return of 14.7% during inflationary periods, making it one of the best assets to hedge against rising costs.

Dhanteras 2024: Auspicious Timings for Buying Gold

Choosing the right time to buy gold on Dhanteras can add another layer of significance to your purchase. In 2024, the most auspicious periods for buying gold are:

• Pradosh Kaal: From 5:54 PM to 8:22 PM on 29th October, this time is considered highly favourable for worshipping Goddess Lakshmi and making gold purchases.
• Vrishabha Kaal: Overlapping with Pradosh Kaal, this period from 6:55 PM to 8:57 PM is especially auspicious for investments.

Purchasing gold during these times is believed to magnify the positive effects of your investment.

Benefits of Buying Gold

While cultural and religious beliefs certainly drive gold purchases on Dhanteras, the financial advantages cannot be overlooked:

1. Store of Value: Gold’s ability to hold value is well-documented. As paper currencies and digital assets fluctuate, gold’s intrinsic value remains relatively stable. For instance, during the pandemic-induced market crash in 2020, gold prices surged by over 25%, proving its resilience.
2. Global Acceptance: Unlike stocks or mutual funds, which are often limited by geography, gold has universal recognition. Whether in India, the US, or Europe, gold can be traded or sold with ease. This makes it one of the most liquid and globally accepted forms of investment.
3. Capital Appreciation: Gold has shown consistent capital appreciation over the long term. In 2023, the price of gold in India saw a 15% increase, reflecting its strong performance during times of market volatility.
4. Protection Against Economic Uncertainty: With rising inflation and global economic challenges, gold continues to be a stable asset that protects wealth. Data from the Reserve Bank of India shows that gold reserves have grown by nearly 60% over the last five years, further highlighting its importance as a financial safeguard.

Dhanteras Shopping Tips

Before you head out to buy gold this Dhanteras, keep these important tips in mind:

1. Buy from Reputed Jewellers: Ensure you purchase gold from well-established and trusted jewellers to guarantee the authenticity and purity of your investment.
2. Check for BIS Hallmarking: Always look for the Bureau of Indian Standards (BIS) hallmark to ensure the purity of the gold. This certification protects you from fraudulent practices.
3. Monitor Gold Prices: Gold prices can fluctuate daily, so make sure to check the latest rates before making a purchase. Websites such as India Bullion and Jewellers Association (IBJA) provide live price updates.
4. Making Charges: When buying gold jewellery, remember that making charges can vary significantly among retailers. Compare these charges to get the best deal.
5. Consider Digital Gold or Sovereign Gold Bonds: If storing physical gold is a concern, consider investing in digital gold or Sovereign Gold Bonds (SGBs) offered by the Government of India. SGBs provide the dual benefit of annual interest along with price appreciation, making them an attractive option.

Dhanteras is much more than just a day of cultural importance, it offers a unique opportunity to blend tradition with smart financial decisions. Buying gold on this auspicious day not only aligns with the blessings of wealth and prosperity but also strengthens your financial portfolio. Given its stability, global acceptance, and proven performance during economic downturns, gold remains one of the most reliable investments for long-term financial security.

As you celebrate Dhanteras this year, consider the timeless value of gold and how it can light the way to a prosperous financial future.

(The author is Co-founder and Executive Director, Prime Wealth Finserv Pvt Ltd)

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.