A dim outlook on the global and Indian economy in 2019 has worked in the favour of those who invested in gold on Dhanteras 2018 (5 November 2018). Between then and the Dhanteras of 2019, that is 25 October, the price of the yellow metal has gained around 20 percent in value.
Between Dhanteras 2018 and 2019
On 5 November 2018, gold futures were trading at around Rs 31,800 per 10 grams on MCX (Mutli Commodity Exchange) while silver futures were being bought at Rs 38,650/kg.
On Friday, gold futures were trading at Rs 38,325 per 10 grams, which is 20.5 percent higher than the price seen on the same auspicious occasion a year ago.
Similarly, silver futures are trading 19.3 percent higher than the previous Dhanteras at Rs 46,111 per kg.
Maximum gains that could have been made
Further, if an investor who purchased these precious metals on 5 November 2018 had sold them on the first week of September when prices had touched new highs in India, he/she would have made solid returns of 25.4 percent and 33.2 percent, on gold and silver, respectively.
On 3 September, gold had touched a high of Rs 39,885/10 grams and silver was priced at Rs 51,489/kg, pushed higher by the then prevailing US-China trade tensions.
Multiple ways to invest in gold/silver
On the occasion of Dhanteras, you can invest in these metals in more than one way rather than sticking to the traditional way of purchasing physical gold. Physical gold comes with its own problems of storage, jeweller's making charges, etc.
Since gold and silver prices are highly affected by trends in the global scene, investing in market-linked investment options associated with these metals is also a good choice. Gold ETFs (exchange-traded funds), gold mutual funds and also sovereign gold bonds are options to buy as little as one gram gold and make gains from the increase in prices without having to worry about storage or purity.
You can currently also opt for the sovereign gold bonds issued by the RBI. Its ongoing issue closes on 25 October.
Experts recommend allocating 10 percent of your investments in gold to hedge risks in the long term.