Dhanteras is just around the corner, and for many Indian households, it is the most awaited day to buy gold. It is not just about adding to your wealth but also about tradition, good luck, and prosperity. Buying gold on Dhanteras is considered highly auspicious and has been a part of our culture for generations.
But let’s face it—gold prices are at an all-time high this year. It can be overwhelming to decide whether to buy gold now or wait for prices to come down. The truth is, no one can predict exactly where prices will go. Instead of worrying about timing the market, what matters most is buying gold smartly.
Here, I share some simple and practical tips to help you make the most of your gold purchase this Dhanteras, without burning a hole in your pocket.
Why We Still Love Gold
Gold is more than just a shiny metal for us Indians. It’s a symbol of wealth, security, and emotional value. Whether it’s weddings, festivals, or saving for future generations, gold holds a special place in our hearts and homes.
But apart from tradition, gold is also a useful financial asset:
• It acts as a hedge against inflation, meaning it keeps value even when prices of other things go up.
• It provides diversification in your investment portfolio; gold usually moves differently from stocks and can protect you in uncertain times.
• It has intrinsic value—unlike paper money, gold has been valued for thousands of years.
Still, buying gold blindly when prices are very high is not wise. That’s why a little planning and knowledge go a long way.
1. Think Beyond Jewellery: Consider Sovereign Gold Bonds (SGBs)
Traditionally, many of us buy jewellery on Dhanteras. While jewellery is beautiful and has sentimental value, it comes with making charges and wastage, which add significantly to the cost.
This is where Sovereign Gold Bonds come in handy. Issued by the Government of India, SGBs let you invest in gold without holding physical metal. They pay you interest (around 2.5% per year) on top of the gold price gains.
Why SGBs?
• No making charges or purity worries.
• You earn interest regularly.
• Tax benefits if held till maturity (8 years).
• Safe, as they are backed by the government.
If there is a fresh issue of SGBs around Dhanteras, it’s a great option to include in your gold portfolio.
2. Use Gold ETFs and Mutual Funds for Easy Access
Gold ETFs and gold mutual funds are like owning gold digitally. You buy units through your demat account, and the value changes with gold prices.
The best part? No storage worries, no making charges, and you can buy or sell anytime the market is open.
For those who don’t want to carry physical gold or want flexibility, this is an excellent option.
3. Digital Gold: The New Way to Buy Small
Digital gold has become popular recently, especially with many fintech apps allowing you to buy gold in tiny amounts.
It’s perfect if you want to gift gold to your loved ones or invest a small amount every month. The gold is stored safely in vaults, and you can sell it anytime.
But always check if the digital gold provider is trustworthy and fully backed by real gold. Also, be aware of small fees or spread costs.
4. If You Must Buy Physical Gold, Buy Coins or Bars Instead of Jewellery
If your heart is set on physical gold, coins or bars are better investment options than jewellery because:
• Coins and bars come with no or minimal making charges.
• Jewellery has making charges, design costs, and sometimes wastage losses.
• Coins and bars are easier to sell without big discounts.
Remember to buy only BIS hallmark certified gold to ensure purity. Ask for proper bills and certificates.
Also, avoid buying from unknown or untrustworthy jewellers just because they offer lower prices. It’s better to pay a little extra for trust and quality.
5. Don’t Put All Your Eggs in One Basket: Spread Your Investment
Instead of buying all your gold at once on Dhanteras, spread your purchases over a few weeks or months.
• If you’re buying physical gold, try buying smaller amounts instead of one big purchase.
• If investing in ETFs or digital gold, set up a monthly purchase plan (SIP) to average out price fluctuations.
• Keep a balance between physical and paper gold based on your needs.
This way, you reduce the risk of buying at a price peak and get better average returns over time.
Bonus Tips to Keep in Mind
• Compare prices and premiums across multiple jewellers before buying. Don’t fall for rushed sales pitches or festive hype.
• Negotiate making charges when buying jewellery—some jewellers may be flexible.
• Store physical gold safely in a bank locker or a reputed vault. Avoid keeping large amounts at home.
• Remember that gold is a long-term investment. Don’t expect quick profits or panic sell if prices dip temporarily.
• Keep your gold portfolio balanced—experts often suggest not investing more than 10-15% of your total savings in gold.
Understanding Taxes on Gold
Knowing how gold is taxed helps you plan better:
• For physical gold, if you sell after 3 years, the gains are taxed as long-term capital gains with indexation benefits.
• For gold ETFs and mutual funds, similar long-term capital gains tax rules apply.
• SGBs offer tax benefits on maturity, which physical gold does not.
It’s always good to consult a financial advisor or tax expert if you’re unsure.
Conclusion: Celebrate Tradition, But Invest Wisely
Dhanteras is a beautiful occasion to celebrate prosperity and add gold to your family’s assets. Whether it’s for rituals, gifting, or investing, gold is a timeless choice.
However, buying gold when prices are at an all-time high can be daunting. By combining tradition with a little financial wisdom—like diversifying your investments, choosing the right type of gold, and spreading your purchases—you can make your gold buying meaningful and beneficial.
Remember, gold is a journey, not a sprint. Buy with patience, keep your emotions in check, and let your gold investments grow steadily, just like your happiness this festive season.
