Gold on Akshaya Tritiya? Grandma was right & you could have been richer

If you had listened to your grandmother and bought gold on Akshaya Tritiya, you’d be sitting on a solid return today. Rising geopolitical tensions and global economic uncertainty have driven gold prices to nearly Rs 10,000 per gram. Gold bought on this auspicious day has delivered double-digit returns over the past 25 years, according to a ToI report.

A large chunk of these gains comes from the sharp rise in gold prices in the last four years. Prices have more than doubled from Rs 47,452 per 10 grams in April 2021 to Rs 98,955 now. Anyone who invested in gold in 2021 has earned over 20 per cent returns—more than equity mutual funds over the same period.

Also Read: Jewellers search for more than golden eggs as gold prices soar


But while gold has moved up strongly, it has also gone through long phases of dull returns. Between 2014 and 2018, gold gave annualised returns of less than 2 per cent—failing to beat even the 4.8 per cent yearly consumer inflation during that time.

Many financial advisors see gold as a dead investment because it doesn’t generate income or pay dividends. But gold acts as an effective diversifier since its value doesn’t move with other assets. In times of geopolitical conflict or high inflation—when equities usually struggle—gold tends to perform well. This negative correlation helps reduce risk in an investment portfolio. Gold is also highly liquid and can be traded globally.

Analysts expect more upside in 2025. Geopolitical risks have only grown, and the new leadership in the US has triggered a global tariff war.

Still, experts say gold should not be seen as a speculative investment. Instead, it should be used to preserve wealth and balance a portfolio. Most advisors suggest putting no more than 15 to 20 per cent of a portfolio into gold.

With prices nearing Rs 1 lakh per 10 grams, many investors may now be thinking of booking profits. Since the removal of indexation benefit in 2023, capital gains from gold are taxed at regular income tax rates.

However, Sovereign Gold Bonds (SGBs) offer a unique tax benefit. Issued by the RBI, these bonds are tied to gold prices. Investors receive 2.5 per cent annual interest, which is taxable. But if held until maturity, the capital gains are completely tax-free.

And while we talk about listening to our grandmothers, veteran banker Uday Kotak recently reminded everyone of India’s original investor—the homemaker.

“The performance of gold over time highlights that the Indian housewife is the smartest fund manager in the world,” Kotak posted on X. “Governments, central banks, economists, who support pump priming, high deficit funding, may need to take a leaf from India, a net importer of store of value forever!”

According to a Times of India report from December 2024, citing World Gold Council data, Indian women collectively own between 24,000 and 25,000 tonnes of gold—more than 25 million kilograms. That’s about 11 per cent of the world’s gold reserves in jewellery form.

The scale is unmatched globally. Indian women hold more gold than the combined reserves of the top five countries. The US holds about 8,000 tonnes, Germany 3,300, Italy 2,450, France 2,400, and Russia 1,900 tonnes. Even put together, these five trail India’s women in gold ownership, the ToI report said.

Year	Akshaya Tritiya Date	Gold Price (Rs/10 gm)	*CAGR Till Date (%)
2000	6-May-00	4,355	13.3
2001	26-Apr-01	4,025	14.3
2002	16-May-02	4,827	14.0
2003	6-May-03	5,310	14.2
2004	23-Apr-04	5,713	14.5
2005	11-May-05	6,113	14.9
2006	30-Apr-06	9,520	13.1
2007	20-Apr-07	9,352	14.0
2008	8-May-08	11,726	13.4
2009	27-Apr-09	14,792	12.6
2010	15-May-10	18,177	12.0
2011	6-May-11	22,000	11.3
2012	24-Apr-12	29,055	9.9
2013	13-May-13	26,890	11.5
2014	2-May-14	29,480	11.6
2015	21-Apr-15	26,950	13.9
2016	9-May-16	30,330	14.0
2017	28-Apr-17	29,620	16.3
2018	18-Apr-18 (Wednesday)	31,410	17.8
2019	7-May-19 (Tuesday)	31,739	20.9
2020	26-Apr-20 (Sunday)	46,353	16.4
2021	14-May-21 (Friday)	47,452	20.2
2022	3-May-22 (Tuesday)	52,670	23.4
2023	22-Apr-23 (Saturday)	61,080	27.3
2024	10-May-24 (Friday)	73,240	35.1

*Data table from ToI. Calculation based on gold price of Rs 98,955 per 10 gram as on 25 April 2025


(with ToI inputs)