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Is it wise to buy gold this Akshaya Tritiya? :AUGMONT KNOWLEDGE SERIES

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Akshaya Tritiya, celebrated as an auspicious day to invest in gold, often sees a surge in gold purchases across India. But in 2025, with gold prices touching all-time highs, the big question for investors and buyers alike is: Is it wise to buy gold this Akshaya Tritiya?

Over the last 20 years, gold has delivered approx.15% CAGR, which is quite robust, especially in comparison with many fixed-income instruments and even some equity segments during market volatility. Gold has also acted as a hedge against inflation, currency depreciation, and geopolitical uncertainties.

 

Why Gold Has Performed Well

Several factors have supported gold prices in recent years:

  • Geopolitical tensions: Russia-Ukraine war, Israel-Palestine unrest, and US-China trade concerns.
  • Inflation worries: Gold is a traditional inflation hedge.
  • Global economic uncertainty: Fears of a recession and a weak global economic outlook.
  • Central bank buying: Many countries, including India and China, have increased gold reserves.
  • Currency depreciation: The weakening of the Indian Rupee against the US Dollar added to local gold price inflation.

Why You Should Consider Buying

  • Tradition with benefits: Buying gold on Akshaya Tritiya is culturally symbolic and has proven profitable historically.
  • Diversification: Gold acts as a portfolio stabilizer, especially during market downturns.
  • Returns remain promising: With global uncertainties continuing and rate cuts expected in the US, gold may remain supported in the near term.
  • Demand for digital and investment-grade gold is rising: More buyers are shifting toward efficient, value-oriented gold investments.

Caution Due to High Prices

  • Gold prices are near historical highs (₹96,000 per 10 grams), so bulk buying may not be advisable.
  • A correction could occur if:
    • US-China tensions ease.
    • Interest rates rise unexpectedly.
    • Investors shift their focus back to risk assets like equities.

Smart Buying Strategy for 2025

Buy with a measured and strategic approach:

  1. Avoid large lump sum purchases: Instead, opt for staggered buying or SIPs in gold digital gold or ETFs.
  2. Use Akshaya Tritiya as an entry point: Start small with Augmont Digital Gold or gold mutual funds.
  3. Buy coins or smaller jewellery pieces: Avoid heavy making charges; focus on purity and resale value.
  4. Think long term: If you’re buying gold as an asset, not just a purchase, stay invested for 3–5 years.

Final Word

Akshaya Tritiya 2025 presents an opportunity to align tradition with smart investing. While prices are high, gold’s long-term track record, safe-haven status, and cultural relevance make it a viable addition to your portfolio. Just remember to balance emotional purchases with financial prudence—and consider buying in forms that add both value and flexibility.

In short: Yes, buy gold—but buy smart.

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Indian Diamond Jewellery Market Is Second-Largest Market Globally: 2025 De Beers India Diamond Acquisition Study

India’s Natural Diamond Jewellery Market Is Currently Valued At Rs 49700 Crore and Is Projected To Reach INR 1,500 Crore By 2030.

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The Indian diamond jewellery market has entered a transformative era, officially overtaking China and Japan to become the second-largest market globally, according to the 2025 De Beers India Diamond Acquisition Study (DAS). Capturing a 12% share of global demand, India’s Natural Diamond Jewellery (NDJ) market is currently valued at Rs 49700 crore and is projected to reach INR 1,500 Crore by 2030. This growth is underpinned by a seismic shift in consumer behaviour, led by a new generation of buyers who view diamonds not as dormant assets, but as essential elements of their daily identity.

The study identifies Generation Z as the undisputed powerhouse of the Indian diamond market. Contrary to global narratives, young Indians are embracing natural diamonds with unprecedented enthusiasm, with Gen Z (aged 18-28) now generating a staggering 51% of the total market value, a 19 % increase since 2022. This demographic records the highest average price paid per piece at INR 198,000, driven by high acquisition rates and a desire for authentic luxury. When combined with Millennials, these two generations consisting of 86% of the Indian diamond jewellery market value, signalling a long-term youth-led expansion that is reshaping the luxury landscape.

A profound cultural shift has also redefined how diamonds are worn in India, marking the end of “locker luxury.” In 2014, 56% of diamond jewellery was reserved for special occasions, while only 27% was worn daily. Today, 52% of acquired diamonds are now worn every day. This transition is closely linked to the rise of the self-purchasing woman; outside of the wedding segment, 64% of natural diamond jewellery is self-purchased to celebrate personal milestones or as an impulse treat. Even within the wedding sector, which accounts for 29% of the market value, a remarkable 79% of the value is contributed by brides purchasing for themselves.

Shweta Harit, Global SVP, De Beers Group, said:

India’s ascent to the position of the world’s second-largest diamond market is a testament to the deep-rooted emotional and cultural connection Indian consumers have with natural diamonds. As global markets evolve, India stands out as a beacon of growth, driven by a generation that values authenticity and rarity.

At De Beers, we see this as a journey in which the timeless artistry of a natural diamond meets the modern, fast-paced aspirations of Indian Gen Z and Millennial consumers. India is now a primary driver of global demand, shaped by a consumer base that is younger, more independent, and more style-conscious than ever before.”

Natural diamonds remain the most desired gift and self-purchase item in India, consistently outperforming gold jewellery, smartphones, and luxury watches. As the addressable market expands to 67 million women across Tier 1 to Tier 5 cities, the future of the Indian diamond industry looks increasingly robust. With high-income households forecast to grow by 16% through 2030, the demand for natural diamonds as both a lifestyle statement and a symbolic investment is set to reach new heights. 

As India cements its place as a global diamond powerhouse, natural diamonds have officially evolved from ‘special occasion’ heirlooms to everyday essentials. This shift reflects a visionary new era where nature’s greatest art meets the bold independence of a generation that no longer saves its brilliance for tomorrow, but chooses to wear it every single day.

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