Akshaya Tritiya 2023: Is it good to place cash into gold, silver instantly — outlined

Comparing gold and silver expenses instantly with their prices on Akshaya Tritiya twenty years up to now, we uncover that gold has given spherical 1000 per cent return whereas silver has surged near 900 per cent on this time. Taking gold worth on Multi Commodity Exchange (MCX) on Akshaya Tritiya 2022, gold worth has appreciated to the tune of 18 per cent in last one 12 months whereas silver has delivered 19 per cent return to its patrons.

Meanwhile, if we take a look at equity return on this time, the BSE Sensex has delivered spherical 1900 per cent return to direct equity patrons whereas in last one 12 months, the 30-stock index has given spherical 4.70 per cent return to the index patrons.

Why you need to put cash into gold, silver?

Speaking on significance of gold funding on Akshaya Tritiya, Anuj Gupta, Vice President — Research at IIFL Securities said, “On Akshaya Tritiya 2003, gold price was around ₹5,656 per 10 gm on MCX whereas the gold future contract for June 2023 on MCX is quoting ₹59,855 per 10 gm. Similarly, silver rate today on MCX is ₹74,670 per kg while on Akshaya Tritiya 2003, the white metal price on MCX was ₹7,550 per kg.”

On return given by gold and silver patrons, who bought these bullions on Akshaya Tritiya, market skilled Sugandha Sachdeva said, “Looking back to Akshaya Tritiya 2003 (twenty years ago), gold has delivered annualized returns of more than 12 per cent since then, while in absolute terms it has garnered whopping returns of around 1000 per cent as prices were trading at ₹5656 per 10 gm mark back then. Even as we compare the returns of gold since Akshaya Tritiya 2022, prices have surged by almost 18 per cent and there is scope for a further rise in the precious metal from a long-term standpoint.

On return given by gold in last 10 years, Amit Khare, AVP-Research Commodities at Ganganagar Commodity said, “Gold has given 9.23 per cent of frequent return on every Akshaya Tritiya throughout the last 10 years. If we focus on regarding the range for the following one 12 months (Akshaya Tritiya 2023 to Akshaya Tritiya 2024) ₹57,000 to ₹64,000 per 10 gm can be the range for this 12 months. So patrons must put cash into the lower range and can book on the upper range.” Amit Khare said that MCX gold worth was at ₹26,854 per 10 gm ranges on Akshaya Tritiya 2013.

See Akshaya Tritiya gold worth for last one decade:

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Photo: Courtesy Ganganagar Commodity Ltd.

On components that fueled gold and silver prices in last one 12 months, Naveen Mathur, Director — Commodities and Currencies at Anand Rathi said, “Recessionary fears, Central Bank buying & Dollar weakness are the major factors that could enhance returns till next Akshaya Tritiya, whereas gold is still expected to average in the range of Rs. 59,000 – 60,000 / 10 gm over & above Rs. 51,058 / 10 gm average on MCX seen in 2022 providing 16 -20 % returns amid its safe haven appeal. Meanwhile expectations remain for Gold to trade in the range of $ 1870 – 2190 on Comex (CMP $1985/ounce) for 2023. On MCX we might expect prices to remain volatile over the remaining period as may likely test Rs. 64,500 – 65,000 per 10 gm on the higher side in futures contract ahead of next Akshaya Tritiya.”

Gold vs silver vs stock market

Comparing the gold and silver returns with equities in last twenty years, Anuj Gupta of IIFL Securities said, “The BSE Sensex has ascended from 2,966 to 59,655 levels in last twenty years, delivering around 1900 per cent return to direct equity investors whereas in last one year, the 30-stock index has risen from 56,975 to 59,655, giving around 4.70 per cent return to the index investors.”

Anuj Gupta went on in order so as to add that BSE Sensex has risen from 19,691 (Akshaya Tritiya 2013) to 59,655 ranges (Akshaya Tritiya 2023), delivering spherical 200 per cent return to its patrons. In this period, gold worth has ascended from ₹26,854 to ₹59,855 per 10 gm ranges whereas silver worth on this interval shot up from ₹45,118 per kg to ₹74,670 per kg ranges.

See Akshaya Tritiya gold, silver and Sensex return in last 20 years:

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Photo: Courtesy IIFL Securities

Advising patrons to place cash into gold on Akshaya Tritiya 2023, Sugandha Sachdeva said, “On this propitious festival, apart from the traditional way of purchasing physical gold, there are a lot of other options available for investing in gold-be it sovereign gold bonds, gold ETFs, gold mutual funds, digital gold, or gold derivative contracts on the exchange platform. Preference for any of these alternatives shall be based on your risk appetite, time horizon, and investment objective.”

Disclaimer: The views and proposals made above are these of specific particular person analysts or broking companies, and by no means of Mint. We advise patrons to check with licensed specialists sooner than taking any funding selections.

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