Dhanteras, one of the most auspicious occasions to buy gold, sees people visiting jewellery stores in large numbers and making gold purchases. Gold’s enduring value and resilience during economic uncertainty make it a preferable choice for investors. “Gold is seen as a hedge against dollar weakness. Given recent trends, it is always a good idea to have a small allocation to this asset class,” says Kavitha Menon, a SEBI-registered investment advisor and founder of Probitus Wealth.

While physical gold (jewellery, coins, etc.) was for long the only way to invest in this precious metal, many other financial instruments have now come up through which one can own gold assets to diversify their portfolio. Menon informs, “Traditionally, gold was always held in the form of jewellery by Indian families. The purpose was always to create a safety net to tide over any adversities. Now, families can achieve the same purpose by buying tax-efficient and cost-efficient gold via Sovereign Gold Bonds (SGBs) and funds.”