Dhanteras 2023: This Diwali season, should you purchase gold? According to analysts

 Dhanteras 2023: This Diwali season, should you purchase gold? According to analysts

"Should you purchase gold this Dhanteras 2023? Diwali 2023 is when gold purchasing occurs. Is it a wise financial decision? Investments in gold made around Dhanteras have historically produced long-term double-digit returns."

 

"Purchasing gold for Dhanteras 2023 today: Many people believe that purchasing gold or gold jewelry during Dhanteras is auspicious. For many years, conservative investors have seen gold as a safe haven asset that may serve as a long-term buffer against hazards. Amidst the increasing geopolitical problems worldwide, investors are once again showing a preference for gold.

So, is it wise for you to purchase gold on Dhanteras 2023? Is it a wise financial decision? What experts have to say regarding purchasing gold and potential profits is as follows:

According to Piyush Gupta, Director of Research at CRISIL Market Intelligence and Analytics, domestic gold prices have increased by 11% as of November 6, 2023, while equity markets, as measured by the Nifty 50, have increased by 7%. For the one-year period ending on November 6, 2023, gold has increased by 21% while equity markets have increased by 7%."

 

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Because of its reputation as a safe haven asset, Gupta thinks that global concerns have contributed to the yellow metal's significant price increase over the last year. "It serves as a useful portfolio diversifier in uncertain times due to its low correlation with other asset classes like debt and equity," Gupta told TOI.

But according to Piyuhs Gupta, investing in gold via exchange-traded funds (ETFs) can be a better option than buying actual gold. While purchasing actual gold, such as jewelry, coins, and bars, is customarily done on religious holidays like Dhanteras, doing so entails danger of theft, issues with impurity, fluctuating pricing, etc. Rather, he suggests using mutual funds' gold exchange traded funds (ETFs) and gold fund of funds (FoFs) as an easy approach to invest in precious metals electronically.

An ET article claims that in November, the price of gold decreased by Rs 1,000 for ten grams while the price of silver decreased by Rs 1,300 per kilogram. According to Nirpendra Yadav, Senior Commodity Research Analyst at Swastika Investmart, the price of 10 grams of MCX gold may range between Rs 64,000 to Rs 66,000 in 2024, with Rs 56,000 serving as a crucial support level. In the meanwhile, values between Rs 78,000 and Rs 80,000 per kilogram are anticipated to be reached by MCX silver contract prices in the next year.

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According to the analysis, these forecasts indicate a 10% rise in gold and a 13% gain in silver over the current market values of Rs 59,894 and Rs 70,371, respectively. Yadav recommends gold as a safe investment choice, highlighting its cultural importance around Diwali and pointing out that geopolitical unrest throughout the world would probably help bullion's chances.

Kotak Mutual Fund fund manager Devender Singhal emphasizes the appeal of gold as an asset class, especially when a change in direction by the Federal Reserve is expected. For investors, Singhal advises keeping a "slightly overweight" position in gold.

 

Historically, long-term double-digit returns have been obtained from gold investments made around Dhanteras. IBJA National Secretary Surendra Mehta points out that gold has continuously produced strong returns, making it a useful hedge against other asset classes. According to the analysis, Dhanteras gold investments have very profitable returns for periods of 15, 20, and 25 years, all of which above 11%. The 5-year returns on these investments vary from 13.9% in 2018 to 7.1% in 2013.