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  • Dhanteras 2024: Why Do We Purchase Gold On Dhanteras? , Culture News

    Dhanteras, also known as Dhantrayodashi, marks the beginning of the five-day Diwali festival and is one of the most auspicious days in the Hindu calendar. In 2024, Dhanteras will be celebrated on October 29. The day is dedicated to Lord Dhanvantari, the god of Ayurveda and health, and is also associated with wealth and prosperity. One of the most well-known traditions of Dhanteras is the purchase of gold. But why is this custom so important?

    The Mythological Significance

    The tradition of purchasing gold on Dhanteras has its roots in ancient mythology. According to legend, it was on this day that Lord Dhanvantari emerged from the ocean during the churning of the Milky Sea, known as Samudra Manthan, holding a pot of amrita (elixir) in one hand and the holy text of Ayurveda in the other. This event symbolizes the emergence of health and wealth from the depths of the ocean, making Dhanteras a day to celebrate both.

    Another popular mythological tale is the story of King Hima’s son, who was destined to die from a snake bite on the fourth day of his marriage. To prevent this, his wife kept him awake all night by lighting lamps and placing all her gold and silver ornaments in a heap near the entrance of their bedroom. The bright lights and dazzling gold are said to have blinded Yama, the god of death, when he arrived. Pleased with the devotion and wisdom of the young bride, Yama spared the prince’s life. This legend emphasizes the protective and auspicious qualities of gold, reinforcing the tradition of buying gold to ward off ill fortune.

    Cultural and Economic Significance

    Symbol of Wealth and Prosperity: In Indian culture, gold is considered a symbol of wealth, purity, and prosperity. Purchasing gold on Dhanteras is believed to bring good fortune, financial stability, and prosperity to the household. It is a way of invoking the blessings of Goddess Lakshmi, the deity of wealth. Investment for the Future: Gold has always been a preferred form of investment in India. It serves as a hedge against inflation and economic uncertainties. The tradition of buying gold on Dhanteras aligns with the practical aspect of securing one’s financial future. Cultural Beliefs and Rituals: Dhanteras is a day dedicated to performing pujas and rituals that invoke the blessings of Goddess Lakshmi. Many families believe that bringing home gold on this day pleases the goddess, ensuring her blessings for the year ahead. Family and Community Bonds: The act of purchasing gold and other valuables on Dhanteras often involves the entire family. It is a communal activity that strengthens family bonds and promotes a sense of unity and shared prosperity.

    Modern-Day Celebrations

    In contemporary times, the essence of Dhanteras remains deeply rooted in tradition, but the ways of celebrating have evolved. While gold jewelry and coins continue to be popular purchases, many people also buy silver, new utensils, and electronics. The underlying belief is that new acquisitions on this auspicious day will bring luck and prosperity.

    Markets and shops across India witness a significant surge in sales as people indulge in festive shopping. Jewelers offer attractive discounts and new collections to cater to the increased demand. The festive atmosphere, coupled with the anticipation of Diwali, adds to the excitement of the occasion.

    Dhanteras is a celebration of health, wealth, and prosperity. The tradition of purchasing gold on this day is deeply embedded in Indian culture and mythology, symbolizing the hope for a prosperous future and the blessings of divine deities. As we prepare to celebrate Dhanteras in 2024, let us embrace the traditions with joy and reverence, ensuring that the spirit of prosperity and well-being touches every home.

    Tips for Buying Gold on Dhanteras

    Check Purity: Ensure that the gold you purchase is hallmarked and meets the required purity standards. Compare Prices: Gold prices can vary across different jewellers. It’s wise to compare prices before making a purchase. Understand Making Charges: Different jewelers may have different making charges for gold jewelry. Please clarify these charges beforehand. Buy from Reputed Jewelers: Purchase gold from well-known and trusted jewelers to ensure authenticity and quality. Consider Investment Options: If buying jewelry is not a priority, consider investing in gold coins or bars, which often have lower making charges.

    Wishing you a prosperous and joyful Dhanteras!



    (This article is intended for your general information only. Zee News does not vouch for its accuracy or reliability.)

  • Low worth fuels gold rush on Dhanteras in Odisha

    By Express News Service

    BHUBANESWAR: The gold rush on the event of Dhanteras continued within the Twin City with the value of the yellow metallic coming down and virtually each jewelry outlet asserting alluring provides and reductions to attract the group this yr.

    All small and large jewelry retailers in each Cuttack and Bhubaneswar have been teeming with patrons on the day with Dhanteras being thought-about essentially the most auspicious event to purchase one thing treasured.

    On Sunday, the value of gold hovered between Rs 47,000 and Rs 48,100 for 10 grams of 22-carat gold and silver bought at Rs 590 per 10 grams. In August this yr, the value of gold was excessive at Rs 57,000 per 10 grams.

    “Till Friday morning, the price of 10 grams of gold was even less. By night, the price rose by Rs 1,000 to reach Rs 48,100 but it was still less than the prices in August and September which favoured the gold demand and sales,” mentioned Sourav Roy, vice-president of Odisha Jewellers Association.

    Although the precise quantity of gross sales was not identified by Sunday night, Roy mentioned it was even higher than in 2021 when gross sales had neared the pre-pandemic degree. In 2019, the value of gold ranged between Rs 39,000 and Rs 41,000 per 10 grams. On common, a minimum of 100-tonne gold is bought within the Twin City on Dhanteras.

    This yr additionally noticed a change within the jewellery-buying development. Unlike the previous when light-weight jewelry was largely bought, this Dhanteras noticed the sale of heavy jewelry objects as properly with the wedding season approaching, mentioned Sridhar Epari, proprietor of Epari Sadashiv Jewellers.

    “As gold is still considered a valuable hedge against inflation, people continue to invest in it. And after two years of muted wedding celebrations due to the Covid-19 pandemic, people are back in investing in heavy jewellery,” he added.

    CEO of Khimji Jewellers Parth Sarthi mentioned that as a result of weekend and moderation within the gold worth, buyer footfalls throughout their showrooms have been encouraging. “For the upcoming wedding season, we are also receiving good response for heavier designs from our collection and expect more sales compared to last year’s Dhanteras,” he added.

    BHUBANESWAR: The gold rush on the event of Dhanteras continued within the Twin City with the value of the yellow metallic coming down and virtually each jewelry outlet asserting alluring provides and reductions to attract the group this yr.

    All small and large jewelry retailers in each Cuttack and Bhubaneswar have been teeming with patrons on the day with Dhanteras being thought-about essentially the most auspicious event to purchase one thing treasured.

    On Sunday, the value of gold hovered between Rs 47,000 and Rs 48,100 for 10 grams of 22-carat gold and silver bought at Rs 590 per 10 grams. In August this yr, the value of gold was excessive at Rs 57,000 per 10 grams.

    “Till Friday morning, the price of 10 grams of gold was even less. By night, the price rose by Rs 1,000 to reach Rs 48,100 but it was still less than the prices in August and September which favoured the gold demand and sales,” mentioned Sourav Roy, vice-president of Odisha Jewellers Association.

    Although the precise quantity of gross sales was not identified by Sunday night, Roy mentioned it was even higher than in 2021 when gross sales had neared the pre-pandemic degree. In 2019, the value of gold ranged between Rs 39,000 and Rs 41,000 per 10 grams. On common, a minimum of 100-tonne gold is bought within the Twin City on Dhanteras.

    This yr additionally noticed a change within the jewellery-buying development. Unlike the previous when light-weight jewelry was largely bought, this Dhanteras noticed the sale of heavy jewelry objects as properly with the wedding season approaching, mentioned Sridhar Epari, proprietor of Epari Sadashiv Jewellers.

    “As gold is still considered a valuable hedge against inflation, people continue to invest in it. And after two years of muted wedding celebrations due to the Covid-19 pandemic, people are back in investing in heavy jewellery,” he added.

    CEO of Khimji Jewellers Parth Sarthi mentioned that as a result of weekend and moderation within the gold worth, buyer footfalls throughout their showrooms have been encouraging. “For the upcoming wedding season, we are also receiving good response for heavier designs from our collection and expect more sales compared to last year’s Dhanteras,” he added.

  • Gold vs Bitcoin: Which haven is a greater funding this Diwali?

    Palash Udhwani an Investment Analyst with Kunji.io explains the similarity between Bitcoin and gold which is lots by the best way.

    Touted as digital gold, Udhwani mentioned, “BTC has a lot of similar characteristics to gold, namely global availability, high demand, and low supply. The supply and emission of BTC in the market cannot be altered as it is algorithmically programmed. The same factor helps in driving the price of BTC over time. The total emissions of BTC in circulation decrease over time as emissions get halved every four years.”

    As per the info from Kunji.io which is India’s first crypto asset administration platform, previously 5 years, Bitcoin has outperformed gold previously 5 Diwali.

    Bitcoin witnessed a acquire of 312.5% on the Diwali of October 19, 2017, whereas gold witnessed a surge of 29.5%. Further, on Diwali held on November 6, 2018, Bitcoin recorded good points of 196.3% versus gold hovering by 36.1%, nevertheless, it must be famous that the yellow steel noticed an upside within the good points whereas Bitcoin’s acquire narrowed from the 2017 ranges. Notably, on Diwali which was held on October 27, 2019, Bitcoin and Gold each noticed a narrowing of their good points to 99.9% and 11% respectively. However, throughout Diwali 2019, Bitcoin nonetheless carried out higher.

    During November 14, 2020, Diwali, Bitcoin recorded a acquire of 18.7%, whereas gold nevertheless tumbled by 11.6%. But on the Diwali of November 4, 2021, bitcoin declined drastically by 68.9% versus gold which solely shed about 6.7%. In 2021, gold carried out higher than Bitcoin. Overall, in 5 years, Bitcoin gave extra returns than gold.

    View Full Image

    The returns on BTC may look engaging, however the broader crypto panorama offers us with many extra alternatives to extract greater alphas. (Kunji knowledge)

    Over the 5 years, whereas the common return on gold funding would have been round 11%, the identical for BTC is round 111.7%.

    For a aggressive quantitative evaluation, Udhwani mentioned, if you happen to had purchased gold value ₹50,000 for every year beginning in 2017 on Diwali, your present portfolio worth on an funding of ₹2,50,000 would have been ₹2,79,150. If you had bought BTC with the identical, the return would have been ₹5,29,250.

    Udhwani mentioned, the returns on BTC may look engaging, however the broader crypto panorama offers us with many extra alternatives to extract greater alphas. If you had taken positions in BTC together with a set of promising high quality altcoins, an analogous pattern may very well be seen in the identical.

    Giving an instance, Udhwani mentioned, you make investments about $600, round ₹50,000, throughout six good high quality altcoins from the earlier 5 Diwali. The identical with a mixture of BTC would have given a return of 659.624 %, and a pure altcoin

    play would have achieved a 1207% return. The altcoins used right here within the technique are ETH, BNB, LTC, XRP, ADA, and LINK.

    According to the knowledgeable, BTC, being a significant asset with a historical past of greater than a decade, has additionally impressed a whole lot of different decentralised tasks and protocols, which offer big upside potential if correct strategic positions and threat administration are taken.

    Talking in regards to the present state of the bitcoin-gold correlation, Udhwani mentioned, till the market achieves its peak hawkishness, strain on gold and different semi-investment metals like silver and platinum is more likely to persist. As buyers are drawn in by a robust greenback regardless of rising rates of interest, the correlation between bitcoin and gold has reached its highest stage previously 12 months.

    Also, Udhwani added, “Although Bitcoin is regarded as “digital gold” and a hedge against inflation, investors don’t agree much like the yellow metal. As inflation has risen over the past several months, the value of Bitcoin and gold has drastically decreased. It resulted in a correlation at a year-high of +0.4. A strong dollar and high bond yields may lure investors away from the precious metal and Bitcoin.”

    On Saturday, on the time of writing, Bitcoin is buying and selling above the $19,200 mark and its 24 hours acquire is round 1.5% on CoinMarketCap.

    As per Good Returns knowledge, 22 carat gold in India is on the market at ₹47,000 in 10 gram on Saturday up by ₹750 from the day past. While the 24 carat in 10 gram is priced at ₹51,280 apiece greater by ₹830 from the day past.

    Meanwhile, on Friday, at MCX, gold futures maturing December 5 ended at ₹50,635 up by ₹492 or 0.98% from the day past’s ranges.

     

    Disclaimer: The views and suggestions made above are these of particular person analysts or broking firms, and never of Mint.

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  • Gold costs slip forward of Dhanteras on world weak point, spot demand more likely to be strong

    Gold costs throughout India’s key spot markets opened decrease on Friday (October 21) forward of Dhanteras, monitoring weak point within the world markets. Even although a strong bodily demand is seen forward of the auspicious event of Dhanteras, gold costs have largely been muted as a consequence of world components, analysts stated.

    Dhanteras is taken into account to be essentially the most auspicious day for getting new objects starting from gold jewelry to utensils. It goes to be celebrated on Sunday this yr.

    The opening worth for 999 purity gold on Friday was Rs 49,855 per 10 grams, down Rs 373 from Thursday’s closing worth of Rs 50,228, whereas that of 995 purity gold was Rs 49,655, down Rs 372 from Rs 50,027 on Thursday, the info obtainable on India Bullion and Jewellers Association’s (IBJA) web site confirmed.

    Likewise, the worth for gold of 916 purity was Rs 45,667, down Rs 342 from Rs 46,009 and that of 750 purity gold was Rs 37,391, down Rs 280 from Rs 37,671. The 585 purity gold was obtainable at Rs 29,165, down Rs 218 from Rs 29,383, the info confirmed.

    Gold futures on the Multi Commodity Exchange of India (MCX) too had been buying and selling decrease on Friday, in step with the worldwide costs which declined following elevated US Treasury yields and greenback amid a rising refrain of hawkish feedback from Federal Reserve officers.

    Indians store for gold ornaments in Ahmedabad, India, Tuesday, Oct. 18, 2022. (AP Photo/Ajit Solanki)

    At 2:20 pm, the gold contract for December supply was buying and selling at Rs 49,843.00 per 10 grams, down Rs 300.00 or 0.6 per cent from Thursday’s shut of Rs 50,143.00. The volumes stood at 4,438 tons whereas the open curiosity (OI) was at 12,871 tons, information from MCX confirmed.

    According to information by Reuters, spot gold fell 0.2 per cent to $1,624.90 per ounce, as of 0739 GMT, after hitting its lowest degree since September 28. US gold futures misplaced 0.4 per cent to $1,630.10.

    Speaking on the gold demand, Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services stated, “Demand trend for gold has been pretty robust with imports rising in the past few months. Even after a 5 per cent import duty hike we haven’t seen a slowdown or demand rollback in the last few months…with regards to Dhanteras, market estimates anywhere between 35-40 tonnes could be sold during Dhanteras.”

    On the futures, Damani stated that COMEX gold is seen holding close to the $1,605-1,610 per ounce vary over the subsequent few days and will in all probability see a bounceback. For the Muhurat buying and selling session, he stated that Rs 49,800-50,000 per 10 grams might be an excellent degree to purchase from a medium-term perspective. He anticipates gold futures reaching Rs 53,500 mark within the subsequent 12 months.

    Echoing comparable sentiments, Surendra Mehta, nationwide secretary at IBJA stated that he sees extraordinarily optimistic demand on Dhanteras as there’s an enormous rush within the gold market this yr.

    Customers store for gold ornaments in Ahmedabad, India, Tuesday, Oct. 18, 2022. (AP Photo/Ajit Solanki)

    “It seems that there is fear in people’s mind that “I will be left without Gold”. The uncertainty hovering round world economic system, seemingly recession, strengthening of greenback index as a consequence of collapse of assorted world forex, geopolitical rigidity are the primary cause as to why there’s rush to purchase gold. The Gold hovering close to Rs 50,000/- is including gas to fireplace to purchase gold, as Indians really feel that it’s now a base worth of gold,” Mehta stated.

    “We have observed that there is a huge rush to buy gold not only in western India but also in north India. Needless to say, in the south gold sales are like hotcakes every year during Diwali. The good monsoon has enabled good sales in rural India also. We have observed that this year not only lightweight jewellery is sold but there is heavy demand for bridal jewellery probably due to highest number of weddings ahead of Diwali,” he added.

    Ajay Kedia, founder and director at Kedia Advisory informed indianexpress.com that gold demand on Dhanteras is more likely to be strong as after two years of Covid-19 restrictions, this yr has been largely restriction free and extra individuals are more likely to store this yr. There has additionally been a surge within the variety of weddings this yr and the jewelry demand has been greater.

    While he feels that there will be some volatility within the world market within the close to time period arising from the end result of the US Federal Reserve’s assembly early subsequent month the place it could hike its rate of interest, domestically the valuable metallic is more likely to sail via on festive and marriage shopping for.

    “A weak rupee is also likely to support gold prices…for Muhurat trading, the global factor is likely to play a factor and market may move sideways to negative, however in a years time gold can spike up to Rs 56,000 levels,” Kedia stated.

  • No, investing on Diwali doesn’t fetch excessive returns

    Towards this finish, inventory exchanges preserve the buying and selling window open for one hour, in what’s historically generally known as ‘muhurat trading’, on Diwali—the pageant of lights is widely known on 24 October this yr. On Dhanteras—the primary day that marks the pageant of Diwali, investing in treasured metals like gold is common as folks suppose it brings them luck and luck.

    “I imagine in Indian tradition and values, so, I simply do a token funding on Diwali every year. It’s only a sentiment and nothing greater than that,” said Vikas Khemani, founder, Carnelian Asset Advisors.

    Making investments on this day has a lot to do with the sentiments and beliefs in our value system but this should not be done with expectations of generating higher returns. We analysed the 1-year performance of the broad market index—Nifty 500 TRI—and gold as represented by Nippon India ETF Gold BeES during the last 10 years. There is no evidence to prove that making investments during ‘muhurat trading’ or on dhanteras  generates extra returns.

    During the period we analysed, only in four out of ten years, a share market investment made on Diwali would have outperformed the average return made by investing on any other day during the calendar year. Similar is the case for gold. Here, the average return is the mean of the 1-year return rolled during each calendar year. 

    The best and worst Diwali, in terms of 1-year return from the stock market investment, would be in 2020 and 2017 with 52% and -2%, respectively. The correction in the stock market in 2020, in the aftermath of covid-19 outbreak, and the consequent rally in the market in 2021 helped generate higher returns from stock investments in 2020. For gold, the best and worst Diwali investments would be in 2019 and 2013 respectively, with 31% and -13% returns in one year. The spike in gold prices in 2020 as investors moved to safe-haven assets from risky stock market investments resulted in higher 1-year return from the asset class for investments made in 2019.

    It is a no-brainer to understand that this is not just for the investment made on Diwali. Any underperformance or outperformance compared to other dates in the year is just because of the normal market action and has nothing to do with muhurat trading or dhanteras. “There’s no harm in putting some incremental money into your portfolio on Diwali, if the investor believes it is auspicious, but the starting point and end point cannot be from one Diwali to another,” stated Gurmeet Chadha, managing associate and chief funding officer at Complete Circle Wealth. 

    Diwali inventory concepts

    Experts and brokers typically come out with inventory investing concepts on varied media platforms throughout this season. Though such suggestions could possibly be given in good religion, there are some things buyers want to remember earlier than taking these concepts significantly. 

    The most essential factor is the timing of entry and exit in inventory market investing.  “Each inventory has an entry and an exit level. You could not see the identical skilled speaking about the identical inventory as soon as Diwali is over. You could have an entry level, however not know the exit level,” said Basant Maheswari, co-founder & partner, Basant Maheshwari Wealth Advisers.

    The importance of timing becomes crucial in the case of cyclical stocks, which are more volatile than non-cyclical or defensive stocks. Thus, it is better to avoid considering stock recommendations, especially cyclical stocks, by experts on media platforms.

    Even for other stocks, one can consider recommendations only as an input for  your market research.

     “Investors’ psychology everywhere is to seek tips. But, they need to learn enough about businesses and stocks. By considering stock tips, you can borrow the idea, but you need your own conviction to hold onto these ideas when things go bad,” opined Samir Arora, founder and fund supervisor at Helios Capital Management.

    An understanding of valuations, enterprise and governance are essential to generate affordable returns from fairness. When investing instantly in shares, “there is no such thing as a substitute to doing your individual analysis or understanding the enterprise. There isn’t any various to constructing your individual conviction,” added Khemani.

    Experts also suggest that we need to understand the background of experts giving recommendations. There are experts who advocate various styles of investing such as momentum, value, and growth. Each comes with different requirements of holding period, risk appetite, etc. 

    Further, there were many instances in the past in which the calls by celebrity investors went wrong. Taking cues from their holding for your personal investment, too, is not advisable. 

    For example, the late Rakesh Jhunjhunwala, a renowned investor held DHFL in his portfolio in the past. After failing to service its debts, the price of the non-banking financial company collapsed and the firm was finally delisted in 2021. 

    “Star or celebrity managers can afford to lose money. Most retail investors can’t,” stated Vidya Bala, co-founder, PrimeInvestor.in.

    Sunil Singhania, founder – Abakkus Asset Manager, stated retail buyers shouldn’t instantly put money into shares. “They must be investing in mutual funds, probably the most environment friendly types of investing,” he added.

    Portfolio approach

    When investing in stocks based on recommendations, one also needs to examine where that stock fits in one’s portfolio.

    “Apart from the overall asset allocation, a portfolio approach for each asset class is necessary. For equity, both in terms of the risk profile of the stock, and the diversification or the concentration that the stock is adding to investors’ portfolio is to be checked,” added Bala.

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  • Investing in Gold ETF is nearly as good as investing in bodily gold

    Dhanteras, which marks the primary day of Diwali in India, is taken into account auspicious to purchase gold and silver. Buying gold on auspicious events is part of the Indian custom.  Investment in gold will be finished within the type of Physical gold, Sovereign Gold Bonds, Gold ETF, Gold Funds. Gold ETFs are mainly exchange-traded funds that spend money on gold.

    Apart from cultural and conventional causes, gold additionally has an essential position to play in a single’s portfolio as that of a diversifier and a hedge towards inflation and volatility in different asset courses.

    Chintan Haria, Head – Product Development & Strategy, ICICI Prudential AMC stated that buyers who’re contemplating to buy gold for funding goal this Diwali can think about Gold ETFs.

    “Investing in Gold ETF is nearly as good as investing in bodily gold. Since Gold ETF is held in demat, an investor needn’t fear about storage and security features. Those with no demat can spend money on the Gold Fund of Fund,” stated Chintan 

    In phrases of purity, Gold ETF purchases gold of 99.5% purity or increased. Moreover, they are often bought or bought on the exchanges anytime through the buying and selling hours identical to equities. Investors can transact for as little as one unit of gold, he added.

    Chintan Haria stated that from an allocation perspective, buyers can think about a 5-10% allocation to gold by means of Gold ETF or Gold FoF of their portfolio.

    Meanwhile, home gold change traded funds (ETFs) witnessed inflows of ₹330.24 crore in September after two months of outlflows totaling ₹495 crore. In the previous three months so far the yellow metallic corrected 7% from $1802 an oz (31.10 gm) to $1677.

    With Dhanteras across the nook, the jewelry business is cautiously optimistic concerning the demand, primarily as a result of exceptionally excessive base final 12 months, inflation worries and the general rising price of residing.

    Disclaimer: The views and suggestions made above are these of particular person analysts, and never of Mint.

     

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  • This Dhanteras, gold down ₹3,000 from final yr’s ranges. Good time to purchase?

    After posting stellar good points for the previous few years, the yellow metallic has been buying and selling range-bound up to now 12 months. Gold had hit a file excessive of ₹56,200 in August final yr and since then has struggled for good points. So this Dhanteras gold costs are buying and selling at ₹47,741 per 10 gram on MCX futures market, down from ₹50,500 ranges throughout Dhanteras final yr. 

    “Indians’ love for gold is aware of no bounds, it’s the second-largest shopper of gold. In the run-up to the festive and marriage season coupled with unlocking throughout India, the demand for gold is more likely to choose up, serving to the value. Gold is seen as a severe funding and asset class by Indian households,” says Nish Bhatt, Founder & CEO, Millwood Kane International.

    “Gold outperformed as an asset class in 2020 but lost its sheen as economies across the globe emerged out of the shadows of COVID19. Gold prices are still far away from their all-time high witnessed in August 2020. Concerns of tapering, strengthening US Dollar, and high rate of vaccination have dampened prospects for gold. Going forward, the actions by the global central banks mainly the US Fed on the liquidity tightening will guide gold prices,” he added.

    Jewellers count on to see sturdy demand this festive season. Parag Shah, Director, HK Jewels Pvt Ltd, the retail jewelry arm of the famend Hari Krishna Group, mentioned “We are seeing a demand growth for gold in tier-2 cities. After two years of challenges, customers want to spend and invest in jewellery. We have booked orders for 33% more gold in October 2021 over October 2020.”

    Some analysts say that gold shouldn’t be anticipated to see a serious rally within the close to time period. 

    “Prices proceed to remain agency however unlikely for main rallies within the rapid run. A stronger US forex, optimistic international financial sentiment, and expectations of petering out stimulus measures by central banks proceed to place strain on protected property like gold. A gradual fairness can also be influencing the short-term outlook of the commodity. However, a weak Indian rupee and festive season demand would restrict main selloffs in home costs,” mentioned Hareesh V, Head of Commodity at Geojit Financial Services.

    Analysts at Motilal Oswal keep a optimistic bias on gold. “We have been bullish and proceed to keep up a optimistic bias for gold worth over the following 12 months, and count on that the consolidation is stretched might see some directional transfer quickly. The present situation might have some brief time period hiccups which could give traders a greater shopping for alternative. We imagine that gold has a possible to surge in the direction of $2000 as soon as once more and may even make a brand new life time excessive on the Comex. On the home entrance we count on costs to surge in the direction of highs of Rs.52000-53000 over the following 12 months,” they mentioned in a current observe. 

     

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  • Gold value right this moment: Spot value inches up close to Rs 48,000/10 gm on Dhanteras demand

    Gold value right this moment: Gold costs throughout India’s key spot markets opened increased right this moment amid the native demand on the event of Dhanteras, analysts mentioned.
    The opening value for 999 purity gold was at Rs 47,904 per 10 grams, up Rs 150 from Monday’s closing value of Rs 47,754, whereas that of 995 purity gold was Rs 47,712, up Rs 149 from Rs 47,563 on Monday, the info obtainable on India Bullion and Jewellers Association’s (IBJA) web site confirmed.
    Likewise, the worth for gold of 916 purity was Rs 43,880, up Rs 137 from Rs 43,743 and that of 750 purity gold was Rs 35,928, up Rs 112 from Rs 35,816. The 585 purity gold was marked at Rs 28,024, up Rs 88 from Rs 27,936, the info confirmed.
    However, on the futures aspect, gold futures contract on the Multi Commodity Exchange of India (MCX) have been buying and selling marginally decrease on Tuesday, according to the worldwide costs which eased following an uptick within the greenback as traders await a coverage assembly of the US Federal Reserve for clues to the way it will combat rising inflationary pressures and worries over weaker financial development.

    At 12:31 pm, the gold contract for December supply was buying and selling at Rs 47,832.00 per 10 grams, down Rs 71.00 or 0.15 per cent from Monday’s shut of Rs 47,903.00. The volumes stood at 991 tons whereas the open curiosity (OI) was at 8,939 tons, information from MCX confirmed.
    According to information by Reuters, the spot gold dipped 0.1 per cent to $1,791.23 per ounce by 0406 GMT, whereas the US gold futures slipped 0.2 per cent to $1,791.80.
    Speaking on the gold market, Ravi Singh, VP and Head of Research at Share India Securities advised indianexpress.com, “Gold prices have decreased by over 5.5 per cent from last year’s Dhanteras. It’s currently hovering around Rs 48,000-mark while last year it was around Rs 51,000. The dip in prices is likely to generate interest amongst buyers and demand is expected to remain robust for the next two months.”
    Keeping a two-month view, Singh suggested shopping for gold at Rs 47,850 per 10 gram with a goal value of Rs 48,500.
    Jewellery demand in India within the July-September interval elevated roughly 60 per cent each on quarter-on-quarter and on year-on-year foundation, resulting from robust pent-up demand, a rebound in financial exercise and decrease gold costs, World Gold Council famous in its just lately printed Gold Demand Trends Q3 2021 report.
    Ajay Kedia, Director at Kedia Commodity Comtrade, mentioned that demand has been choosing up within the bodily market resulting from festivals and upcoming marriage season nevertheless globally gold costs will get a transparent route put up the result of the Fed meet.

    “We have to see what is the tone of the US Fed, whether they are hawkish or slightly dovish,” he advised indianexpress.com.
    Kedia stays constructive on gold for the following couple of months until December and advises traders to purchase on dip with a spread of Rs 46,000 on the decrease aspect and Rs 50,000 on the upper aspect.

  • How has gold fared when purchased yearly on Dhanteras?

    Indians flock to gold on Dhanteras for prosperity and luck. Looking on the yellow steel strictly from an funding perspective, it has certainly glittered for many of the previous decade.

    Gold bought on Dhanteras 10 years in the past has yielded annualized return of 6.56% until now. This is greater than the annual rise of 5.6% in the fee inflation index (CII) previously 10 years. CII signifies the rise in the price of items and property as a consequence of inflation.

    Though gold has managed to beat inflation previously decade, it has paled compared to different asset lessons. BSE Sensex has risen almost 13% since October 2021. However, it’s price noting that previously 10-year interval, gold purchased between 2015 and 2020 has yielded double-digit returns (see graphic). On the flipside, gold costs have stagnated previously one 12 months and delivered damaging return.

    Tapan Patel, senior analysis analyst, HDFC Securities, stated world financial restoration submit covid-19 has led to a minor correction in gold costs previously 12 months. “Gold ETF inflows have additionally declined,” he stated.

    Even then, monetary planners advise towards overdoing gold in a single’s funding portfolio. It ought to solely be included as a hedge towards inflation and a cushion towards market volatility. “There is empirical knowledge to indicate that weak financial outlook buoys up gold costs and gold as an asset class does properly when markets are turbulent. Both the explanations clarify the sharp rise in gold costs in 2020,” stated Amit Suri, a Delhi-based monetary planner.

     

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    “Long-term previous returns of gold will present that it delivers sub-optimal returns that can’t assist fulfil monetary targets. In some years, it has delivered returns decrease than what a financial institution financial savings account affords.”

    If you buy gold yearly round festivals as a conventional observe, monetary specialists advise limiting your funding portfolio’s publicity to gold to 10%.

    For the aim of diversification, you’ll be able to take a look at investing in different merchandise, corresponding to gold exchange-traded funds (ETFs) and gold bonds instead of bodily gold.

    “Investors ought to shift from shopping for gold the standard approach within the type of jewelry and contemplate paper gold for the aim of funding,” stated Suri.

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  • Know about taxes earlier than exchanging presents this festive season

    Exchanging presents is a key a part of festivals in India. From money presents to gold and silver cash, all represent gifting choices throughout Dussehra, Dhanteras and Diwali.

    However, many usually are not conscious that presents can entice tax. Under Section 56(2) of the Income Tax Act, presents obtained throughout the 12 months are taxed as per the slab price beneath ‘income from other sources’.

    Tax guidelines for gifting differs as per the character of the reward and from whom it’s obtained.

    Which presents are taxed?

    You are required to pay taxes on presents if the combination worth of all presents obtained throughout a 12 months exceeds ₹50,000. If the combination quantity is ₹50,000 or much less, it’s tax-free, nevertheless, if the whole worth exceeds the brink even by a rupee, all the quantity is taxed. For occasion, when you have obtained presents value ₹51,000, all the sum will probably be taxed as per the relevant price. In the case of money, any sum obtained with out consideration is handled as a present. Without consideration implies that the merchandise is transferred purely as a present or donation, with no receipt or promise of cost, service or good of worth in alternate of the mentioned merchandise. For immovable property, when it’s obtained with out consideration, its stamp responsibility is chargeable to tax, whereas when the property is transferred with insufficient consideration, stamp responsibility worth exceeding consideration is taxed.

    In the case of jewelry and shares, the honest market worth of such objects is chargeable to tax.

    Exemption in tax

    You can get an exemption on tax on presents relying on whom are you receiving it from. According to the I-T Act, presents obtained from kinfolk are exempt from tax.

    Donee’s partner, brother or sister, brother or sister of the partner, brother or sister of both of the dad and mom or parents-in-law, any lineal ascendant or descendent, any lineal ascendant or descendent of the partner, partner of the individuals referred above all qualify as kinfolk as per the I-T Act.

    Gifts obtained from any of those individuals, regardless of the character and worth of the reward and the event when the presents are transferred, are exempt from tax.

    Since associates usually are not thought of kinfolk, presents from them are taxed. However, presents given on the event of wedding ceremony or transferred beneath a Will or inheritance are exempt from tax when obtained from any individual and never simply kinfolk.

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