So, new ventures made and valuables purchased on this day would be fruitful and believed to bring luck and success. Traditionally, in India, on this day people purchase gold as it is the symbol of wealth, prosperity and fortune. This year, it will be celebrated on 13th May, 2013.
Every year, to attract buyers; jewellers and banking institutions offer various attractive schemes such as offering a free silver coin on purchase of gold, discount in making charges on gold jewellery and discounts on gold coins.
Analyzing recent correction in prices of gold and with no other positive trigger except for Akshaya Tritiya festival, analysts are expecting prices to stay in the range of Rs 25,000 to 28,000 per 10 gram in near term.
I know various people among family, friends and society who would do not look at co-relation of economy with gold price. They simply have 10 general or superstitious reasons to invest in gold. However, I would like to share 5 reasons why you should not invest in gold on this Akshaya Tritiya:
1. Buying gold on this auspicious day only due to superstitious belief of growing wealth.
2. Investing in gold due to speculation of gold price will continuously increase for next 2 - 3 years.
3. Simply buying gold since your financial advisor told to invest in this yellow metal.
4. If your portfolio already consist of 10% investment in gold.
5. Considering gold can help to grow your wealth. However, fact is, in long term investment in gold helps to preserve wealth, not grow it.
Stating reasons you should not invest in gold doesn't mean I have negative view on gold but there should be timing to enter as investor. Portfolio should be well balanced with various asset classes, speculating in the future of gold price will diminish your wealth instead of growing it....!!!
Most readers would have already made their mindset to invest in gold on the day of Akshaya Tritiya. So, here are various investment options available to invest in gold:
1. Gold Jewellery
2. Gold bar / coins
3. E-gold (National Spot Exchange Limited)
4. Exchange traded fund (Gold ETF)
5. Gold funds
This year, we recommend you to invest in gold ETF / E-gold / gold funds instead of buying physical delivery of gold jewellery from showroom or gold coins from banks.