A Smarter Way to Invest in Gold and Silver on Akshaya Tritiya

Indians have traditionally bought gold and silver as jewellery and savings. These precious metals hold a special place in Indian tradition and are passed on from one generation to another.

It’s interesting to see that Indian households hold over 25,000 tonnes of gold. This is more than the combined holdings of the world’s top 10 central banks.

But, why do we buy gold and silver on Akshaya Tritiya? And how are people buying gold and silver in today’s world?

Why Buy Gold and Silver on Akshaya Tritiya?
Numerous Indians save throughout the year to purchase gold and silver on Akshaya Tritiya.

The term “Akshaya” means constant and never diminishing. It is believed that buying gold and silver on this day will help lead to wealth and prosperity.

This is a special day in the Hindu calendar because the sun shines at its brightest during this time of the year. Hence, it’s also considered to be an auspicious day to start new ventures and enter into new partnerships like weddings.

Why Gold and Silver?
Indian traditions encourage the purchase of gold and silver as a way to preserve and grow wealth. This is because these precious metals are considered to be valuable assets and enjoy consistent demand across the world.

The status of gold and silver has not diminished in today’s world either. Over the past 10 years, gold has increased almost three times in value.

Some reasons to invest in these precious metals include:

• As a way to store and preserve wealth.
• As an investment vehicle to meet financial goals.
• As a way to hedge against inflation.
• As a way to diversify investments and hedge against risk.

Disadvantages of Physical Gold and Silver
Our grandparents could only invest in physical gold and silver. They had to buy physical gold and silver from a jewellery store or a bank. This led to a lot of safety and storage hassles. Many people had to open safe lockers, which required a monthly or yearly payment. Others took more risk and stored them at home.

Further, purchasing physical gold in jewellery form meant that one had to pay for making charges and other labour costs. There was also no way to guarantee that the gold purchased was pure and genuine.

Today, we can invest in gold and silver digitally and bypass these issues while enjoying the benefits of investing.

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https://www.businesstoday.in/personal-finance/investment/story/750-billion-in-just-1-year-indias-gold-stash-fuels-massive-household-wealth-gain-beats-global-central-banks-469993-2025-03-30

https://www.moneycontrol.com/commodity/international-gold-price?symbol=XAUUSD:CUR

Buying Gold and Silver ETFs
ETFs or exchange-traded funds, are similar to mutual funds except that the units of these funds can be bought and sold over an exchange just like stocks. This makes it convenient to invest in these funds and investors can trade these units similar to stocks.

There are several advantages of investing in gold and silver ETFs:

• The units are held in demat form – This means that there is no need to handle physical items. The units are held in the investor’s name and can’t be misplaced or stolen.
• Purity – When you invest in a gold or silver ETF, your investment is backed by 99.5% purity. There is no need to worry about dishonest salesmen and shady practices.
• The transaction cost is low – There is no need to pay for making or labour charges.

Wrapping Up
Overall, investing in gold and silver ETFs on Akshaya Tritiya may be a wise choice for many investors given the traditional implications and also a way to invest in these commodities.

Disclaimers:

This document represents the views of Axis Asset Management Co. Ltd. and must not be taken as the basis for an investment decision. Neither Axis Mutual Fund, Axis Mutual Fund Trustee Limited nor Axis Asset Management Company Limited, its Directors or associates, shall be liable for any damages including lost revenue or lost profits that may arise from the use of the information contained herein. No representation or warranty is made as to the accuracy, completeness or fairness of the information and opinions contained herein. The material is prepared for general communication and should not be treated as a research report. The data used in this material is obtained by Axis AMC from the sources which it considers reliable. While utmost care has been exercised while preparing this document, Axis AMC does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The AMC reserves the right to make modifications and alterations to this statement as may be required from time to time. Investors are requested to consult their financial, tax and other advisors before taking any investment decision(s).

Mutual Fund Investments are subject to market risks, read all scheme-related documents carefully.