When is the best time to buy gold?

When’s the best time to buy gold? Majority would answer Akshay Tritiya, which falls on May 21 this year, or Dhanteras, which falls on November. It is believed that buying jewellery or at least a gold coin on these days would bring good fortune. But for those who buy gold as an investment option, the price of the yellow metal is the sole barometer to take the buy/sell call. ET has identified three such investors.

Naina Narayanan, Financial Analyst

I don’t believe in buying gold just because it’s Akshay Tritiya. Right now gold is trading at Rs 18,000-levels and it’s an expensive buy. I would rather invest in gold when it is trading at lower levels. But gold is an integral component of my financial portfolio. I bought gold almost a month ago, when prices were hovering around Rs 16,400 levels. I am most comfortable buying gold in form of ETFs as I look at gold as an investment. This is the most profitable and convenient way of investing in gold. I don’t look at gold jewellery as an investment. Jewellers charge hefty ‘making charges’, which don’t reflect the true investment value of gold. Again the value is discounted when you liquidate the investment. I track gold prices regularly through portals and other publications. Accordingly I make a buy/sell decision.

Neha Joshi, Interior Designer

I am comfortable wearing a sliver chain or an artificial bracelet. I do not believe in flaunting gold jewellery. Gold, according to me is a pure investment option. So I invest only in ETFs, not even gold coins as we get a discounted value when we try to sell them. Moreover, there is no organised market to sell gold coins. Similarly, gold jewellery may be studded with some precious or semi precious stones, which has a depreciating value. Hence, it is most profitable to buy gold in ETF form. Since I look at gold as an investment, it doesn’t look attractive option at current levels. I wouldn’t buy gold just because Akshya Tritiya is considered auspicious. I will wait for the prices to come down. What matters the most is the price.

Preeti Harkare, Communication Consultant

I don’t plan to buy gold or gold jewellery on Akshay Tritiya. I buy gold jewellery when there is a requirement such as wedding in the family or when I have sufficient funds and the gold price looks attractive. I don’t link the exercise of buying jewellery to some ritual or tradition such as Dhanteras or Akshay Tritiya. I exchange old jewellery for contemporary designs as the old gold has resale value. But these decisions are based on the gold price and my liquidity condition. People hoard gold jewellery thinking it’s an investment but I don’t belong to that school of thought. When it comes to investment, I prefer buying gold in form of ETFs or assayed and certified gold bars. I track gold prices twice in five days. If I witness a steep decline then I buy ETFs or gold bars.