The Timeless Wisdom of Gold Investment

Had you heeded your grandmother's advice to invest in gold on Akshaya Tritiya, you'd be reaping significant returns today. With gold prices soaring to nearly Rs 10,000 per gram, fueled by geopolitical tensions and economic uncertainty, the yellow metal has proven its worth as a reliable investment.

Gold's Performance Over the Years

Gold has delivered double-digit returns over the past 25 years, with prices more than doubling from Rs 47,452 per 10 grams in April 2021 to Rs 98,955 today. Despite periods of muted returns, such as between 2014 and 2018, gold remains a potent diversification tool due to its negative correlation with other asset classes.

The Future of Gold Investment

Experts predict further growth in gold prices in 2025, citing increased geopolitical tensions and global tariff wars. However, gold should be viewed not as a speculative bet but as a means of wealth preservation and portfolio diversification, with experts recommending a 15-20% allocation.

Tax Advantages of Sovereign Gold Bonds

Sovereign Gold Bonds (SGBs) offer a unique tax advantage, with tax-free capital gains if held until maturity, making them an attractive option for investors looking to benefit from gold's appreciation without the tax burden.