4x Return: How buying 1 gram of gold every Dhanteras for 21 years built wealth

A small gold purchase every Dhanteras could have turned an investment of Rs 1 into nearly Rs 4 lakh over 21 years, while a similar annual investment in silver would have grown from Rs 1 lakh to nearly Rs 3.75 lakh, according to an analysis by Kotak Neo.

The study examined what would have happened if an investor bought just one gram of gold and 100 grams of silver every Dhanteras between 2005 and 2025 and held on to the purchases until November 5. The results show that 21 grams of gold, accumulated over the period at a total cost of Rs 76,246, would now be worth Rs 3,02,400. That represents a gain of Rs 2,26,154, with the investment growing nearly fourfold.

Silver delivered similarly strong returns. Buying 100 grams every Dhanteras would have resulted in an accumulated holding of 2.1 kilograms, purchased for Rs 1,05,329. At current prices, the silver would be worth Rs 3,94,800, generating a profit of Rs 2,89,471.


According to Kotak Neo, gold delivered an annualised return of 15.4% on the staggered purchases, while silver generated 13.8%. The calculations use the actual dates of investment to determine annualised returns.

The findings come as gold and silver prices recover ahead of Dhanteras on November 6, following a period of sharp volatility in global bullion markets.

The World Gold Council said in its October market update that India's seasonal gold demand was showing early signs of strength, supported by lower prices following September's decline. However, elevated gold prices continued to weigh on jewellery purchase volumes.

Kotak Neo's analysis shows that the earliest purchases generated the largest gains. An investor who bought one gram of gold during Dhanteras in October 2005 would have paid Rs 700. That same gram is now valued at Rs 14,400, multiplying the original investment 20.6 times.

Similarly, 100 grams of silver purchased for Rs 1,160 in 2005 would now be worth Rs 18,800, representing a 16.2-fold increase.

The gains were substantial even for investors who began buying during periods of elevated gold prices. Gold purchased during the 2011-2013 period, when prices were relatively high, has appreciated between 4.6 and 5.4 times, according to the analysis.

A gram purchased in 2015 for Rs 2,580 is now worth Rs 14,400, representing a 5.6-fold increase. Even the gold bought during Dhanteras in October 2025 has gained about 11%.

The analysis highlights how regular purchases across different market cycles can build wealth without requiring investors to predict the best time to buy.

Anindya Banerjee, Head of Commodity and Currency Research, said the findings demonstrate the benefits of disciplined long-term investing. "Dhanteras offers an interesting way to look at the intersection of tradition and long-term investing," Banerjee said.

He noted that gold and silver had experienced several market cycles over the past two decades, yet consistent annual purchases would still have accumulated meaningful value.

Banerjee cautioned that the historical gains should not encourage investors to buy precious metals solely because prices have risen. "Consistency, patience and appropriate asset allocation can matter more than trying to time every market move," he said.

Gold and silver can form part of a diversified investment portfolio, he added, although allocations should depend on individual financial goals and risk appetite.

Disclosure: This article has been written by Podishetti Akash, who is not a SEBI-registered Research Analyst or an Investment Adviser. Podishetti Akash and his ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclosures here.