Akshaya Tritiya & Gold: 25 Years of Shining Returns—and What's Next?

Akshaya Tritiya, a festival synonymous with prosperity and good fortune, it’s also the perfect time to reflect on the remarkable journey of gold as an investment asset over the past 25 years.

25-Year Performance Snapshot (2000–2025)

Gold has not only upheld its cultural significance but has delivered stellar long-term returns—both in India and globally.

In Domestic Price of 24K Gold (10g, India)

• ₹4,400 in 2000 → ₹95,000 in 2025

• Total Growth: +2,059%

• CAGR: 13.1%

International Price of 24K Gold (1 oz, USD)

• $279 in 2000 → ~$3,228 as of May 1, 2025

• Total Growth: +1,057%

• CAGR: 10.3%

This performance gap reflects how currency depreciation, import duties, and local demand have made gold even more rewarding for Indian investors.

Out of the 25 years, 17 years have witnessed year-on-year price growth around Akshaya Tritiya of more than 7% ( since 2022 it has surged ahead, may central banks were also buying). 4 years were 0-7% YOY growth and 4 years had negative YOY% (notably 2001, 2013, 2015, and 2017). CAGR of 11–13% reinforces gold's role as a reliable long-term asset.

• 2000–2019 CAGR: 11%

• 2000–2025 CAGR: 13%

• Tradition Meets Strategy: How India Buys Gold

In Southern India and across the country, many families—especially women—prefer monthly gold EMI schemes (offered by brands like Tanishq, GRT etc.,) to steadily accumulate physical gold. It is also an emotional purchase, when a major lumpsum bonus is in our bank.

But in today's fast-paced world, many are switching to Gold ETFs and Digital Gold, which offer:

• No locker hassle

• No making/wastage charges

• Greater liquidity

• Safe, regulated, and convenient

This modern approach blends cultural discipline with financial flexibility, keeping the essence of gold buying intact while improving returns. Financial pundits were in the past saying hold 5-7% of your investment portfolio in gold, now this percentage is increasing to 10-12% also.

Looking Ahead: Goldman Sachs' Bullish Forecast

Goldman Sachs has recently raised its gold forecast, predicting prices could hit $3,700/oz by end of 2025—a +14.8% increase from current levels.

Key Growth Drivers:

• Increased Central Bank Buying

• Economic Uncertainty

• Expected Interest Rate Cuts

Gold remains the preferred “safe haven” as macroeconomic risks persist.

Smart Planning Tip: Wedding Gold Strategy

If you're saving for your daughter’s or children’s wedding, here’s a strategic shift worth considering:

Instead of buying ornaments years in advance (which may not suit future fashion and often lie unused), invest in Gold ETFs or Digital Gold. In last year Gold ETFs gave 30%+ return.

This allows your investment to grow uninterrupted. When the time comes, you can redeem it at full value and purchase jewellery that matches current preferences—maximizing both emotional and financial satisfaction while avoiding unnecessary loss through exchange fees and outdated styles. Yes there may be some long term capital gains tax on redemption.

Final Takeaway

Akshaya Tritiya isn't just a cultural tradition—it’s a testament to gold’s enduring value as an asset class.

Indian households have consistently invested in gold—across economic cycles, making it both a store of value and a symbol of resilience. Whether passed down through generations or pledged during emergencies, gold in India plays both emotional and economic roles.

With strong historical performance, a bullish global outlook, and smarter investment vehicles like Digital Gold and ETFs, gold remains a true win-win for Indian investors.