On the occasion of Akshaya Tritiya 2021, the gold value in India is virtually at the very same level as was seen in the course of the Akshaya Tritiya 2020. The value of gold per ten gram is presently at about Rs 47,000 following obtaining recovered from the lows of about Rs 43,000 in the current previous. Even the gold futures costs on MCX have began to shore up lately. “The MCX gold price continues to exhibit a strong solid show after a big blowout of the US Nonfarm payrolls data. After hitting a more than two weeks low of Rs 46,462 MCX Gold made a reversal to currently trading around Rs 47,900. The Immediate resistance is at Rs 48250 and then at Rs 48360. So consistent trading above Rs 48400 will open doors for Rs 49000 – Rs 49700,” says Rahul Gupta, Head Of Research – Currency, Emkay Global Financial Services.
Overall, the gold value is flat more than a 12-month period and is also about Rs 10,000 decrease from its August 2020 highs. Will, there be sufficient gold shopping for on Akshaya Tritiya 2021 amidst Covid-19 remains to be seen. “Akshaya Tritya fell on 26th April in 2020 and sales were weak due to the challenging environment. However, in 2021, the same factors continue as there is a state-wide lockdown, most of the jewelry shops are closed, physical demand for gold remains muted. So, during these uncertain times, the sentiment of buyers is weak before Akshaya Tritiya. Survival and saving cash for uncertainty is the preference of customers now,” says Ketan Kothari, Director of Augmont.
According to Motilal Oswal Financial Services, “Prices have consolidated over the last few months and recently caught up some momentum and back to around $1800 on the COMEX where we are comfortable suggesting buying for a short to medium perspective targeting new lifetime highs towards $2050 followed by $2200. On the domestic front, the post-budget prices correction is a good level to enter once again for an immediate target towards Rs.50,000 and eventually hitting new highs of Rs.56,500 and above over the next 12-15 months”
Digital Gold
The lockdown continues in most cities and shopping for digital gold can be an selection that investors may well discover. As a gold purchaser, there are distinctive possibilities obtainable in the industry – Sovereign Gold Bond, Gold ETFs, Digital Gold or the physical gold itself in the type of jewellery, gold coins or even bars. Buying gold on the internet by means of apps or sites is also doable now. Gold coins, bars and jewellery are obtainable on the internet as ‘Digital Gold’. Stock Holding Corporation of India provides ‘GoldRush’ on its web page, though Motilal Oswal provides ‘Me-Gold’. The benefit they provide is that one can personal gold with a really low initial investment in digital gold.
“With the Augmont Digi Gold platform, 24K Gold can be bought online 24 hours a day, 7 days a week, and 365 days a year with an amount as low as Re 1. The customer can take physical delivery of the gold at their doorstep and their Digi Gold is stored safely and is also 100% insured,” says Kothari.
Similarly, in the case of Paytm gold, 24kt pure gold can be bought for an quantity up to Rs 1 crore and the purchaser can take delivery of the physical gold. Paytm gold can also be accumulated by means of Gold SIP as a frequent saving selection.
Digital Swiss Gold (DSG) is a further selection to obtain digital gold. According to the corporation, DSG provides a price-efficient platform supplying digital, mobile, and usable physical gold ownership. The corporation delivers a contemporary way to obtain and hold gold digitally in Switzerland for extended-term savings as nicely as sell and send gold by means of a mobile app. As per the corporation details, by cutting out the middlemen and sourcing gold straight from Swiss refineries, DSG commonly saves its clientele up to 10% when compared to published Indian gold costs.
Also Read: Akshay Tritiya 2021: Significance, theme, date and auspicious Puja timings
Will gold value go greater?
Gold costs in the post-pandemic world will continue to rely on quite a few components such as worldwide financial development, interest prices, increasing US yield, inflation, and more. What is critical is to diversify with 5-10 per cent of one’s portfolio in gold preferably by means of paper-gold investments.
Here is what Nirav Karkera, Head of Research, Fisdom has to say to gold investors in 2021. “While strategically allocating to gold makes a whole lot of sense, current economic context may create use for some tactical allocation to the asset as well. We are seeing global central banks and governments pushing for economic growth, albeit at the cost of higher deficits and stressed balance sheets. Key risks looming on the horizon include faster-than-expected reflationary trends and exorbitant equity valuations driven by abundant liquidity and shift towards risk assets. These risks lend support to the proposition of a strategic allocation to gold, from a risk mitigation standpoint. Strong demand from recovering emerging markets like India coupled with continued buying interest from global central banks strengthens the case for gold from a performance enhancement standpoint.”