Jewellers are enticing customers with special offers for gold purchases this Dhanteras, a traditional Hindu festival. It is believed that purchasing gold during Dhanteras will bring good fortune, and this year is no different.
While investing in gold jewelry for personal use is considered favorable during this time, financial experts suggest that there are other superior investment options available. This calls into question the value of physical gold as a part of an investment portfolio.
Amidst the festive atmosphere and increasing gold prices, jewellers are promoting attractive deals, such as discounts on making charges and free gold coins upon purchase, to attract consumers. Suvankar Sen, MD & CEO of Senco Gold & Diamonds, emphasized the focus on offering discounts to valued customers during this auspicious time.
Another major player in the gold industry, Tanishq, is currently offering up to a 20% discount on the making charges for gold jewelry. Additionally, other jewelers, both online and offline, are offering discounts and freebies to attract customers during the festive season.
However, demand for physical gold has seen a decrease globally, despite its repute as a safe haven in times of economic uncertainty. According to experts, additional investment opportunities like Sovereign Gold Bonds (SGB), digital gold platforms, Gold Exchange-Traded Funds (ETFs), and gold mutual funds should be considered, especially for those focused on building a financial portfolio.
Anant Ladha, founder of Invest Aaj For Kal, recommended Sovereign Gold Bonds (SGBs) as an excellent investment option, highlighting that SGBs are devoid of making charges, and investors may receive an additional 2.5% interest per annum. Moreover, the interest earned from SGBs is entirely tax-free after eight years.
Investing in gold through digital platforms, Gold ETFs, and gold mutual funds offers flexibility and professional management of gold investments, though, it may not provide the same tangible satisfaction as wearing jewelry. Ultimately, consumers must decide whether the allure of holding gold assets outweighs the potential benefits of other investments amid market fluctuations.