19% annual returns in 10 years on buying gold on Akshaya Tritiya; Should you invest in gold this year too?
Gold price, which is trading at Rs 71,502 for 10 grams of gold with 999 purity, has witnessed a remarkable rise in the last one year; it has grown by around 18% from Rs 60,616 on previous Akshaya Tritiya (which was on April 22, 2023), according to the India Bullion and Jewellers Association. If we take a 5-year period, then gold has risen 2.25 times since the Akshay Tritiya day of May 7, 2019, when the price was Rs 31,729.
This year, Akshaya Tritiya falls on May 10.
However, gold price recently fell to Rs 71,502, after crossing the Rs 73,000 mark. It has raised concerns among investors whether the price would fall further. So, is this Akshaya Tritiya the right time to invest in gold?
Attractive returns on gold buying on Akshaya Tritiya in last 15 years
The price of the yellow metal has grown not just in the short-term rally of the past 5 years, but even over periods of 10 years and 15 years. It has risen around 2.48 times and 4.86 times, respectively, from the levels of Rs 14,710 in 2014 and Rs 6,100 in 2004.
Historical 10g gold (999) price on Akshaya Tritiya day
Source: IBJA
The returns on gold are linked to your holding period. In the last 20 years, the chances of your investment earning more than 10% return have been higher if the holding period has been 15 years. Even for a holding period of 10 years, the returns have mostly been in double digits since 2014.
Historical returns on gold when invested on Akshaya Tritiya day
Source: IBJA
Is there something peculiar about Akshaya Tritiya?
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