Dhanteras Gold Buying: 31% Returns in One Year and 57% in Two Years – Is It Time to Invest in Gold?
The tradition of purchasing gold on Dhanteras has emerged as one of the most rewarding investment strategies for Indian households in recent years. With an impressive 30.6% return on investment over the past year and a staggering 56.8% return for those who bought gold on Dhanteras two years ago, many are contemplating whether to invest in gold this year.
Strong Short-Term and Long-Term Returns
The recent performance of gold is not only remarkable in the short term but also demonstrates consistent double-digit growth in the long term. As the festive season approaches, the positive returns on gold investments are likely to encourage more individuals to invest in this precious metal around Diwali.
Historically, gold has experienced numerous price corrections and periods of stagnation. While the recent uptrend in prices is encouraging, past performance does not guarantee future returns. Therefore, potential investors should carefully assess their options and consider the possibility of price fluctuations.
Historical Gold Returns on Dhanteras Day
Here’s a breakdown of gold purchases made on Dhanteras day and their historical returns as of October 28, 2024:
| Year of Purchase | Dhanteras Day | Price in Rs (10g, 999) | Holding Period | Absolute Return | Annualized Return (CAGR) |
|---|---|---|---|---|---|
| 2023 | 10 Nov | 60,097 | 1 Year | 30.6% | 30.6% |
| 2021 | 02 Nov | 47,644 | 3 Years | 64.8% | 18.1% |
| 2019 | 25 Oct | 38,570 | 5 Years | 103.5% | 15.3% |
| 2014 | 21 Oct | 27,558 | 10 Years | 184.9% | 11.0% |
| 2009 | 15 Oct | 15,905 | 15 Years | 393.6% | 11.2% |
| 2004 | 10 Nov | 6,525 | 20 Years | 1103.1% | 13.2% |
| 1999 | 05 Nov | 4,600 | 25 Years | 1606.6% | 12.0% |
| 1994 | 01 Nov | 4,806 | 30 Years | 1533.5% | 9.8% |
Current Market Dynamics
As of late October 2024, the price of gold (999 purity) stands at Rs 78,505 per 10 grams. Interestingly, despite a significant reduction in custom duty from 15% to 6% announced in the budget earlier this year, gold prices have not seen a decline. Initially, prices dipped post-announcement but have since rebounded sharply, moving from Rs 68,000 per 10 grams in July to Rs 76,000 per 10 grams.
According to Narinder Wadhwa, Managing Director of SKI Capital, “The sharp recovery in gold prices indicates strong market demand and investor confidence.”
With Dhanteras around the corner, the significant returns on gold investments and the current market dynamics suggest that it might be a prudent time for buyers to consider investing in gold this year. As always, potential investors should conduct thorough research and consider their financial goals before making any investment decisions.