Akshaya Tritiya 2023: Invest in gold jewellery or digital gold? Here's what you can do

Akshaya Tritiya 2023: Akshaya Tritiya is a Hindu festival, which is celebrated to bring wealth and prosperity into one’s life. It is observed on the third day of the month of Baisakha. Buying gold, jewellery is considered very auspicious on this day just like Dhanteras during Diwali. This year Akshaya Tritiya is on April 22.  

From jewellery to gold coins, people plan to invest their money in buying gold thinking about its high resale value. While jewellery is a good option for those who want to wear it as ornaments, gold coins are also a very good option as customers can use it in times of crisis, make jewellery out of it, or even sell it as per their need. 

Digital gold investment, on the other hand, is gradually becoming very popular among new-age investors who see gold as a safe haven for their money in a volatile market. Investing in digital gold involves a method by which an investment can be done in small installments for a certain tenure, just like we do in mutual funds, from anywhere and anytime with the convenience of digital access to the commodity.

Gold jewellery and gold coins 

When buying gold jewellery, one should consider that it is not just a wearable item, it is a tool to fish out of financial emergencies. You can buy it physically in the form of jewellery, coins, and gold bars. As per World Gold Council, India is the world’s largest gold accumulator, holding roughly 25,000-27,000 tonnes in Indian households alone.  

Now buying jewellery or physical form of gold has its own advantages and disadvantages. 

Some advantages are gold jewellery and gold coins come in various sizes, finishings, designs, prices, grades and origins. Investors can purchase based on their budget and personal preference. 

Gold coins minted by the Central government or central agencies guarantee content, purity and design. Gold coins can be easily traded. Investors can just go to jewellery outlets and sell them as per their needs.

In terms of disadvantages, the quality and purity of gold jewellery bought from local shops can be a problem. For gold coins, the price is a bit higher than other metals’ spot prices because of their collectability, legal tender status, and others. 

Also, gold coins and bars are more expensive than paper gold as it involves charges such as customs duty at 15 per cent, GST at 3 per cent and making charges around 5 per cent. 

Lastly, storage of gold jewellery, gold coins, gold bars is a matter of concern because you may have to pay extra to rent a locker in the bank to store them. 

Digital gold 

With changing times, many investors now are opting for digital gold over gold jewellery and coins. Purchasing gold in the form of gold exchange-traded funds (Gold ETFs), sovereign gold bonds (SGBs), issued by the Reserve Bank of India, and gold mutual funds are considered to be wiser options due to their long-term returns.

The first advantage of digital gold is that storage is not a problem. Besides, one doesn’t have to think about verifying the purity of a purchase. One can purchase gold online by paying through digital payment apps and by just creating an account with the seller. After the sale is completed, the seller safeguards the gold for the buyer in a vault.

Another advantage of buying digital gold is that one can invest a minimum amount to buy digital gold, much like one can invest in a SIP, whereas for physical gold, one has to invest a certain amount in one go to buy ornaments or coins.   

Charges on digital gold 

The advantage of buying digital gold over the non-physical form of gold is that digital gold does not attract any cost apart from a one-time levy of 3 per cent GST. For gold ETFs and gold funds, one has to pay recurring annual charges of around 0.5 to 1 per cent. 

Gold prices today

Gold rate on Tuesday saw a surge. On Multi Commodity Exchange, gold June futures were trading at Rs 60,323 per 10 grams, up Rs 143 or 0.24%. Silver May futures were trading higher by Rs 221 at Rs 75,033 per kg on MCX. In the international market, the yellow metal rose on Tuesday after two sessions of losses as the dollar eased, while investors sought more clarity on the U.S. Federal Reserve’s monetary policy stance, according to Reuters. Spot gold was up 0.2 per cent at $2,001.09 per ounce, as of 0457 GMT. US gold futures also rose 0.2 per cent to $2,011.10.

Also read: Adani Power vs Tata Power: Which stock can deliver better returns in long term?

Also read: Buying gold: New hallmarking rules on sale of gold items from April 1

Watch: Hot stocks on April 18, 2023: Reliance Industries, Tata Motors, Zomato, Delhivery, and more