Akshaya tritiya and Gold. Investment in Gold on Akshaya tritiya

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By prakashkl

Akshaya tritiya

Akshaya tritiya is the word derived from Sanskrit which means ' One that never Diminishes '. Relation of Akshaya tritiya and Gold comes in the meaning of Akshaya tritiya itself. Gold is the metal which value never diminishes. Nowadays Indians buy Gold on the day of Akshaya tritiya.

Akshaya tritiya falls on the third day of the bright half of Vaishak month(April - May). It is traditionally the birth day of Lord Parasurama, Sixth incarnation of Lord Vishnu. Another myth associated on this day is the start of the Satya yug which is the first of the four yugas. It is in this day that Veda Vyasa along with Lord Ganapathi started writing Mahabharata. It is also believed that Goddess Gangadevi descended on the earth on this day. It is also heard that Sun and Moon are at brightest on this day. All these things adds to the belief that Akshaya tritiya is a special day. It is the day to celebrate. Lot of good things had happened in this day. So people considers this as a day to start important activities.

But it is jewelers who has capitalized on this day to their advantage. They make maximum promotion to the idea that, if Gold is bought on to the home that day, it will bring wealth and prosperity to their home. Indians also started to believe that if Gold is bought on Akshaya tritiya, rest of the year will be prosperous and bright. The jewelers had sold the idea well. They successfully linked Akshaya tritiya and purchase of Gold. Nowadays People thronged to Jewelery shops all over the country on the day Akshaya tritiya to buy even small piece of Gold.

In 2011 Akshaya tritiya comes on May 6. At this time when the Price of Gold is touching the roof, Indians may find it hard to buy each gram of Gold. Many Indians select the day of Akshaya tritiya to buy Gold. It is believed that, there is no need to look for Muhurtham on this day to purchase Gold. Entire day is auspicious for doing any important activities.

Indians considers Goddess Lakshmi as the Goddess for wealth. Gold is also considered as a safe heaven investment. Gold is also a part of wealth for Indians. So when Indians are buying Gold on Akshaya tritiya, they beleive they invite Goddess Lakshmi to their homes.So they are inviting prosperity and wealth to their home.

BEST INVESTMENT IN GOLD ON AKSHAYA TRITIYA

Before venturing to buy Gold on Akshaya tritiya, please go through the various options involved in buying Gold. Compare the various investment in Gold in India. Always consult a financial expert before deciding the investment in Gold. Have a thorough look at this table and decide what is best for you and then go along with the decision.

BEST INVESTMENT IN GOLD IN INDIA

 
Gold ornaments
Gold ETF
Gold coin
e-Gold
Purity of the Gold
9 carat to 24 carat
995.0% (24 carat)
999.9% (24 carat)
995.0%(24 carat)
Impurity Risks
Possible
No
No
No
Cost of Purchase
Market price of the Gold on the date of purchase & Making charges which varies from 2% to as high as 15% depending upon the works gone into making the jewelry.
1)Market price of the Gold. 2)Brokerage charge of 0.05% to 1 %depending upon the Broker
1)Market price of the Gold 2)Vat-1% 3)Premium charged by the respective banker on the price of the Gold on that day.
1) Market price of the Gold 2) Brokerages range start from 0.25% 3) Transaction charge limited to Rs.1/gm
Storing charges
Almost nil If kept in bank lockers, locker fee should be paid which ranges from Rs.100 to Rs.1000.
1)Annual maintenance charges. Rs.100 to Rs.900 2)Annual recurring expense charged by etf manager. 0.25% to 1% of the total value of investing.
Locker charges which may range from Rs.100 to Rs.1000 depending upon the Bank
Annual maintainance charges which range from Rs.200 to 500
Sources of Purchase
From Jewelers from all over the country
From the stock exchanges like NSE and BSE
1.) Banks 2.) Post office 3.) Jewelers 4.) Non Banking financial agencies
From the trading platform run by NSEL
How to buy
From jewelry shops from all over the Country
Open a Demat and Trading account with Brokers and start buying
Carry Pan card for purchase above Rs.50000. Appraoch any of the above sources.
Open a demat account with brokers approved by NSEL Then logging into the trading platform any buy as you like.
Demat account
No
Yes
No
Yes
Units of Purchase
Gm
1 gm. Except in Quantum ETF which starts from 0.5gm.
0.5gm, 1gm, 2gm, 4gm,8gm, 10gm, 50gm, 100gm and even 1kg are available.
1 unit which is equal to 1gm.
Taxes payable on buying selling
VAT+ Sales tax
No security transaction tax. Brokerage and other charge just like you pay for equity is applicable.
VAT @ 1%
1) Brokerages range start from 0.25% 2) Transaction charge limited to Rs.1/gm
How to sell & Where to sell
You can sell it to any Jewelers
You can sell it at the Exchanges.
Hard to sell. Bankers won’t take back Gold coin. You can sell it to Jewellers
Sell the units in the trading platform run by the NSEL. You can convert e-Gold to physical Gold.
Return on Selling
If the ornaments are of 916% or Hallmarked, then Market price on that day. You will lose the making charges that you paid at the time purchase
Market price of the Gold on that particular day. Provided the ETF that you hold has enough liquidity in the Exchanges. In a situation of scarce volume you have to reduce your price of selling.
Market price of the Gold You have to forgo the premium charged by the bank at the time of purchase.
Market price of the Gold on that day If you are converting it to physical Gold,, then you have to fork out 1%VAT and 1% as Making charges of Gold coin.
Annual Charges
Locker charges Rs.100 to Rs.5000 depending on the size of the Locker
1% to 2% depending on the company
Locker charges Rs.100 to Rs.5000 depending on the size of the Locker
Annual maintainance charges which range from Rs.200 to 500maintainance charges which range from Rs.200 to 500
Fear of theft
High, if no lockers are available
No. Security is taken care by the Fund
High, if not stored in Lockers
No
Liquidity
High, You can even pledge your ornaments to banks and financiers
Moderate. Depends on the volume traded in exchange for the particular ETF
Low
High. Volume is picking up in the NSEL trading platform.
Wealth tax
yes
no
Yes
Yes
Short term capital gain tax
First 3 years
Before One year.
First 3 years
First 3 years
Long term capital gain tax
After 3 years
After One year
After 3 years
After 3 years
As an Investment
No
Yes
Yes
Yes
If the value of Gold stays static for 3 years
Investment decreased in value by making charges and locker charges, VAT and Taxes paid at the time of if any
Investment decreased in value by annual maintainance charges and brokerages and Annual recurring expenses charged by the ETF manager
Investment decreased in Value by the Locker charges
Investment decreased in Value by the annual maintainance cost and brokerages

INVESTMENT GOLD ON THE DAY OF AKSHAYATRITIYA

There are lot of ways by which one can bring Gold to their home on Akshaya tritiya. You can buy Gold as Ornaments, Gold coin, Gold etf, e-Gold etc. All the method of investment in Gold has its own merits and demerits. You can check out merits and demerits of various investment in Gold in the following hubs

1)http://hubpages.com/hub/investment-in-gold-in-India

2)http://hubpages.com/hub/goldcoin

3)http://hubpages.com/hub/e-goldinindia

4)http://hubpages.com/hub/various-ways-of-investing-in-gold

Each year the volume of Gold selling on Akshaya tritiya day is increasing manifold. More and more Indians select the day of Akshaya tritiya to purchase Gold. As long as the craving for this yellow metal is there, Akshaya tritiya will be celebrated. Even at this astonishing prices for Gold in this year, I don't foresee any decrease in the sales of Gold.

A major trend on Akshaya tritiya Gold purchase is the emergence of Gold coin. Many Gold coins are available nowadays with pictures of Goddess Lakshmi embedded in it. Gold coins are the most sought buys in the day of Akshaya tritiya. Jewelers also highlight their advertisements showing the Gold coins.

So on the day of Akshaya tritiya, I am thinking of not buying buy Gold coins but thinking to buy e-Gold . Buying e-Gold has its advantages. You can see through the advantages in my hub http://hubpages.com/hub/e-goldinindia.

Happy and prosperous Akshaya tritiya day and happy and prosperous follow on year for all of you

Comments

chamilj profile image

chamilj Level 4 Commenter 13 months ago

People are investing in Gold for thousands of years.

xavierdhs profile image

xavierdhs 9 months ago

Nice...article...

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