Gold falls from Rs 1 lakh peak: Should you buy jewellery or invest in gold funds this Akshaya Tritiya?
Just before Akshaya Tritiya, gold prices in India have softened. Gold 24-carat created history on Tuesday, 22 April 2025, as it breached the Rs 1 lakh mark for the first time in the spot market. The major reasons for this were global economic uncertainty in the wake of the US trade tariff announcement, inflation concerns, and investors’ inclination towards the metal, seeing it as a safe option. However, this surge was for a short time, and after this, there has been a significant drop in the prices of the precious metal. On the Multi Commodity Exchange (MCX), gold futures with a June 5 expiry date fell to Rs 95,200 per 10 grams.
Akshaya Tritiya on 30 April: Tradition of shopping on an auspicious day
This year, Akshaya Tritiya is falling on 30 April. According to the Hindu calendar, this day falls on the Tritiya Tithi of Shukla Paksha of Vaishakh month, and it is considered auspicious to buy precious metals and other valuable assets like real estate and vehicles. The tradition of buying gold on this day is very old in India. People believe that things bought on Akshaya Tritiya bring prosperity and peace to the house.
Physical gold Vs gold mutual funds: Where should you invest
After marking the landmark of Rs 1 lakh, gold prices in the spot market have come down by nearly 5% as of April 25. According to the Indian Bullion and Jewellers Association, the gold price was quoted at Rs 95,670 per 10 grams on Friday, April 25. This decline in gold prices from all-time highs will give some relief to buyers who want to purchase gold jewellery or coins on Akshaya Tritiya.
If we look at the current prices offered by some of the top jewellers, the rate of 24 carat gold (as on April 24, 2025) according to major jewellery brands was as follows:
Kalyan Jewellers: Rs 9,005 per gram
Tanishq: Rs 9,055 per gram
Malabar Gold & Diamonds: Rs 9,005 per gram
Joyalukkas: Rs 9,005 per gram
Gold mutual funds delivering exceptional returns
Other than physical gold, one good option is gold mutual funds, which have given exceptional returns over varied periods – short term to long term. Gold mutual funds’ category return has been 9.19% in 1 week, 18.34% in 3 months, 31.96% in 1 year, 20.82% in 3 years, 13.67% in 5 years and 12.27% in 10 years.
Top performing gold mutual funds have generated over 19% returns in the last 3 months and more than 34% in the last 1 year.
Also read: 5 oldest gold ETFs in India: How their long-term returns stack up against physical gold
Which is better for investment – gold jewellery or gold funds
According to Saurav Ghosh, Co-founder, fixed income investment platform Jiraaf, “Akshaya Tritiya is an auspicious occasion when people want to buy gold from an emotional/ spiritual perspective. So, there will be people who want to buy jewellery for consumption and there’s no two way for them. However, it’s important to understand that jewellery comes with an additional making charge of 5-25% eating into the value. Not to mention, the liquidity aspect is always a challenge with physical gold, mostly because of this emotional value being attached.”
From a personal finance perspective, investing in gold funds rather than jewellery is always a wiser thing to do, he believes. “Nonetheless, it’s a good time to invest in gold, even though it’s at an all-time high, as the chances of it going higher are on the cards given the market uncertainty. Although there might be short-term fluctuations, it’s always lucrative in the long run.”
Echoing similar views, Yogesh Kansal, Co-founder and Chief Business Officer, Appreciate, says Physical gold is still a symbol of prosperity, particularly on auspicious days like Akshaya Tritiya, but it has drawbacks such as storage, insurance, and no return. On the other hand, gold ETFs offer liquidity, ease of access, and the option to invest small sums, making them popular among contemporary investors, the fintech firm’s co-founder adds.
Also read: Banning Gold ETFs as loan collateral yet another ‘blunder’ after Sovereign Gold Bond misadventure
Outlook on gold demand this Akshaya Tritiya given the record-high prices
Kunal Varma, CEO and Co-Founder of fintech firm Freo, says Akshaya Tritiya holds immense cultural relevance to India and the sentiment surrounding the occasion continues to drive buoyant demand. “Although we may not see a spike in physical gold purchases for large-ticket items, there is a tendency for consumers to still want to make symbolic investments and mark the occasion, especially through digital and fractional options,” he adds.
Whether high gold prices will impact consumer buying sentiment
There is clearly some price sensitivity, especially in rural areas where gold is a cultural asset and an investment, Varma said adding that at the same time, “we’re also seeing a change in how people are willing to invest they are still intending to purchase but are purchasing smaller quantities or digitally instead of not purchasing. The intent is still there , only the quantity and format are changing.”
Notable trends in the market
“We are seeing an uptick in interest in digital gold, particularly among a younger urban cohort that loves the ease, transparency, and flexibility it offers,” he said.
Also read: Who are the world’s biggest hoarders of gold? The names will surprise you
Will Akshaya Tritiya push gold prices to new highs?
Aksha Kamboj, Vice President, Indian Bullion and Jewellers Association (IBJA), says, “With gold prices hitting an all-time high of Rs 1 lakh for 10 grams, it’s natural for people to wonder how the auspicious festival of Akshaya Tritiya will affect buying sentiment.”
The festival has always been associated with good fortune and a rise in gold purchases, and while demand continues, buyers today are far more thoughtful and practical, she said, adding that many are now considering gold not just for its traditional value, but also as a reliable investment in uncertain times.
There’s a clear shift towards lightweight jewellery, low-carat jewellery, gold coins, and digital gold for their affordability and ease, while hallmarked jewellery remains a must for purity and future resale, according to her.
“My advice for this Akshaya Tritiya, celebrate with warmth, but buy with wisdom. Let gold be more than a festive custom; make it a meaningful part of your financial plans. Even small, mindful investments today can turn into something valuable tomorrow,” Kamboj further said.
Physical gold: Investment linked to tradition and emotion
In India, gold is not just considered a metal, but a symbol of tradition and emotion. Be it marriage, worship or any festival-gold in the form of jewelry is deeply connected to our culture.
Advantages:
Can be sold or mortgaged immediately if needed.
Social and traditional importance remains.
Can be preserved for a long time.
Disadvantages:
The total cost increases due to making charges and GST.
There is a risk of theft or loss.
Locker and storage expenses are separate.
There is no regular income on this.
Also read: Is your investment in Sovereign Gold Bonds safe?
Gold Mutual Funds and Digital Gold: Smart and convenient options
Nowadays, people are also investing in gold through digital means – like gold ETFs, gold mutual funds or sovereign gold bonds (SGBs). In these, you do not need to buy physical gold and you can buy and sell them online anytime.
Benefits:
No tension of making charges or storage.
Investment can be started even with a small amount.
Liquidity is high – can be cashed out anytime.
Works on transparent market-linked rates.
Disadvantages:
Traditional uses like wearing are not possible.
Some degree of risk is present related to digital platforms or market.
Some options like SGB have a lock-in period.
Summing up…
If you want to follow tradition this Akshaya Tritiya and you need gold in the form of jewellery, then it may be better to buy physical gold in limited quantity. But if your priority is only investment and better returns, then gold mutual funds or digital gold can be a more sensible option.
Financial experts advise that only 10 to 15 percent of your total portfolio should be invested in gold so that diversification is maintained and risk is balanced.