Akshaya Tritiya is associated with wealth and prosperity. The purchase of gold is considered auspicious on this day. While traditionally, the occasion means buying physical gold, experts suggest going for digital gold this season.
This is because the nature of gold has changed with time. Gold is now traded and predicted as a commodity. It has become a highly-sought-after investment destination because of its reputation as a store of value.
During a crisis, gold as a commodity has always performed well because of its nature as a safe haven.
The last one year has also not been an exception to this rule.
During the surge of COVID-19, Vaibhav Saraf, director, Aisshpra Gems and Jewels points out that a significant increase in demand for gold bullion and gold jewellery has been witnessed.
"A major part of sales lost (due to lockdowns) were recovered. The financial year concluded with a near 90 percent sales of the previous year," Saraf stresses.
On prices, Ketan Kothari, director of Augmont explains that gold is nearly trading at the same levels of around Rs 47,500 now as compared to the day of Akshaya Tritya of 2020, which was on April 26.
"Safe heaven demand through ETFs and physical buying amid COVID pandemic lead prices to trade around Rs 58,000/10 gm in August 2020. But soon after with the announcement of COVID vaccination and recovery in growth in the economy, gold prices started to fall with ETF liquidation. As Fed indicated to keep the interest rate stable at zero through 2023, the US 10-yr Treasury Yield rebounded and traded around 1.7 percent in March and reduced the appeal for safe haven and gold touched the level of around Rs 45,000-45,500 last month," he illustrates.
However, Kothari expects to witness a rebound and an upside in gold prices soon.
Snehal Choksey, director of Shobha Shringar Jewellers believes that last year was the one with the highest fluctuations in prices.
However, he added that enhanced consumer confidence for gold was also witnessed. Even after correction gold has given more than 15 percent return and he thinks that this trend will continue for some time.
Ishu Datwani, founder, ANMOL, meanwhile, thinks that sales would be affected this season as they are again back to a shutdown.
"Some online sales will, however, be seen," Datwani opines.
Disclaimer: The views and investment tips expressed by experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
(Edited by : Jomy)
First Published: IST