Dhanteras 2024: Should you buy gold today? Here’s why the yellow metal is a good investment bet

Should you buy gold this Dhanteras 2024? Dhanteras, a day considered auspicious for purchasing gold, is being celebrated in India today on October 29, 2024.. Despite a 30% surge in the yellow metal’s price since the previous Dhanteras, investing at current levels may still be a wise choice, feel experts, and investors have various options to consider.
Experts believe that investing in gold will yield attractive returns in the future, despite the rally over the past year.
According to an ET report, Anuj Gupta from HDFC Securities recommends buying gold around Rs 75,500–76,000 and accumulating on dips in the range of Rs 73,500–73,700, with a price target of Rs 85,300–87,000 until the next Dhanteras. He says the stop loss should be at around Rs 71,500 level.
“We expect that investing in gold will reap benefits in the future and it will provide attractive returns notwithstanding the rally in the past one year. Geopolitical and economic uncertainties, significant global ETF inflows, dovish monetary policy by western central bankers, the US election, and a lower dollar index continue will support the bullish trend in gold,” he was quoted as saying.
Ventura Securities sees an upside to Rs 85,700 per 10 grams in gold, with support at Rs 77,000, while silver prices may reach Rs 1,06,000 to Rs 1,20,000, with support at Rs 95,500.
However, investors with a short-term view should be cautious, as prices may subside after the sharp uptick. Amit Goel from Pace 360 expects gold prices to decline over the next few months before resuming their long-term bull run, as the asset class is currently overheated.
Investors have several options for buying gold, including physical gold (jewellery, bars, and coins), gold ETFs, gold SIPs, digital gold, and gold futures.
Prathamesh Mallya from Angel One calls gold a “portfolio diversifier for investors” and suggests it could be a substitute for equities in the near to medium term for less risk-averse investors.
While the demand for gold jewellery during Dhanteras and Diwali 2024 may be under pressure due to record-high prices, jewellers expect demand to persist, particularly due to the ongoing wedding season and the cultural significance of gold during these festivals. Consumers may gravitate towards lightweight jewellery and coins, though volume-based demand may struggle.
Gold ETFs have seen significant growth in India over the past four years, with investors increasingly inclined to invest in gold via the mutual fund route. Vishal Jain from Zerodha Fund House highlights the advantages of gold ETFs, including high purity, secure storage, full insurance, and the flexibility and cost-efficiency of ETFs.
Gold SIPs and digital gold are also viable options for investors looking to regularly invest in gold without the need for physical storage.
However, experts advise against investing in Sovereign Gold Bonds (SGBs) at the moment, as they are trading at a premium and may experience lower liquidity.