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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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India Gold Conference 2026: India Gold Vision: Recycle, Reform & Re-Innovate

The future of India’s gold market, the conference made clear, will depend not merely on how much gold India owns, but on how efficiently that gold can be recycled, monetised and put to productive use.

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The India Gold Conference (IGC) 2026, held in Goa under the theme “India Gold Vision: Recycle, Reform & Re-Innovate,” brought together policymakers, regulators, bullion banks, refiners, exchanges and jewellery-industry leaders to examine how India can build a more efficient, transparent and technology-driven gold ecosystem.

The inaugural session was graced by presence of Guest of Honour  Richa Goel Agarwal, Chief General Manager, SEBI along with   Sachin Jain, Regional CEO – India, World Gold Council , Prithviraj Kothari, National President, IBJA, Rajesh Rokde, Jignesh Shah, Mentor and Coach, IGM, Chairman-GJC,  Samit Guha, MD- & CEO, MMTC-PAMP, Shivanshu Mehta, Head- Bullion and Chief Business Officer- MCX. Representing the organizer Eventell Global Advisory was  Srivatsava Ganapathy, Director & CEO.

The panel sessions at India Gold Conference 2026 covered the key structural and strategic priorities shaping India’s gold market. Some of the sessions were: Making GMS Work, Strengthening Trade with Dubai Bullion Market, Exchange-based Spot Trading in Bullion, Meeting All Our Requirements for Jewellery Demand from Buy-Back of Old Gold Jewellery, Import Substitution Opportunities in Gold Investment Demand, and AI Use Cases in the Bullion Business.

A key focus was the future of the Gold Monetisation Scheme (GMS) and its potential to mobilise India’s large above-ground gold holdings, reduce dependence on imports and help contain the current account deficit (CAD).

Making GMS Work

An expert panel agreed that the GMS needs greater participation from the jewellery trade if it is to achieve meaningful scale. The discussion highlighted the role of RBI, SEBI and industry bodies in shaping the modified GMS and stressed the need to make gold deposits more liquid, transferable and commercially useful.

Among the proposals discussed was the possibility of tokenising GMS holdings, allowing investors greater liquidity and transferability. Converting GMS holdings into Electronic Gold Receipts (EGRs) could also enable gold to be used as collateral for borrowing.

However, taxation remains a significant concern for deposit-taking institutions, with the panel noting that uncertainty around tax treatment continues to act as a deterrent to wider participation.

Technology at the Core

The conference placed strong emphasis on technology as an enabler of gold-market reform. In his keynote, Jignesh Shah, Mentor & Coach, India Gold Metaverse, argued that traceability, transparency and trust must be integrated through technology.

He highlighted blockchain, asset fractionalisation and digital platforms as potential tools to broaden retail participation and create new avenues for gold investment, while also envisioning India as a potential leader in gold-backed financial ecosystems.

GoldSense™ Launched

IGM also unveiled GoldSense™, an AI-powered enterprise solution designed for non-destructive gold verification. The portable karatometer is designed to assess gold to depths of up to 7 mm, using AI-driven analysis without damaging the asset or relying on harmful X-ray radiation.

Priced at Rs 5 lakh per unit, the technology is positioned as a tool for more standardised, connected and data-driven gold evaluation.

Building a Spot Gold Market

Another major discussion centred on exchange-based spot trading in bullion. Industry leaders stressed that a liquid spot market is essential to modernise India’s bullion ecosystem, strengthen price discovery and support the country’s growing digital-gold market.

The panel also called for policy changes, particularly addressing double GST taxation and GST offset mechanisms. Collaboration between IBJA and IGM was cited as part of ongoing efforts to strengthen spot-price discovery.

Recycling Gold to Meet Demand

The conference also examined the potential of old-gold buybacks to meet a greater share of India’s jewellery demand without relying entirely on fresh imports. Gold recycling was positioned as a critical component of India’s long-term strategy to improve supply security and reduce import dependence.

Sessions additionally explored gold leasing, import substitution in investment demand, electronic gold receipts, Dubai bullion-market linkages and AI applications in bullion businesses.

The Bigger Picture

The discussions at IGC 2026 underscored a broader shift in India’s gold policy—from simply managing imports towards building a formal, liquid, technology-enabled and recyclable gold ecosystem.

For the GMS to fulfil its original promise, however, the message from the conference was clear: participation must extend beyond banks to jewellers and consumers, while liquidity, taxation, transferability and technology must be addressed together.

If these structural barriers are resolved, monetising India’s existing gold stock could become an important source of domestic supply, reduce reliance on imports and contribute to a more efficient gold market—and potentially help moderate the country’s CAD.

The future of India’s gold market, the conference made clear, will depend not merely on how much gold India owns, but on how efficiently that gold can be recycled, monetised and put to productive use.

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