India celebrates Dhanteras on the first day of Diwali, a festival that welcomes Lord Dhanvantri, the Hindu God of wealth, to bring luck and prosperity. On this auspicious day, buying gold and other metal products is considered to be prosperous and is believed to bring wealth all through the year. You can purchase or invest in gold in multiple ways, such as ornaments, coins, bars, gold stocks, gold Exchange Traded Funds (ETFs), Sovereign Gold Bonds (SGBs), etc. However, before investing in gold, it is important to know about the current and future demand prospects of gold.
Gold (yellow metal) is an important cultural object in India, valued as a store of wealth and prestige as well as an essential component of numerous customs. The demand for gold surges not only on Dhanteras and Diwali but also during other regional festivals like Akshaya Tritiya, Pongal, Onam, etc.
During Q3 2023, demand for gold in India stood at 210.2 tonnes, reflecting a rise of 10% against demand in Q3 2022. The total jewellery demand for Q3 2023 rose by 7% to 155.7 tonnes versus 146.2 tonnes in Q3 2022. Furthermore, gold imports witnessed a notable growth of 19% to 220 tonnes in Q3 2023 against 184.5 tonnes in Q3 2022.
While investing in gold coins, bars, and jewellery are popular ways, you can also consider alternative gold investments to avoid storage hassles, doubt about purity, and enjoy tax benefits. Let us now discuss these alternative gold investments that you can add to your portfolio this festive season:
Generating wealth is not an overnight process; it is a long-term journey. You can enhance this journey with the help of diversification of your portfolio with multiple asset classes. Among other assets, you can consider adding gold to your portfolio as it acts as a hedge against inflation, rising demand, tax benefits, etc. If the above investments interest you, open a demat account with Angel One today.
Disclaimer: This article has been written for educational purposes only. The securities quoted are only examples and not recommendations.
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