The Soaring Prices of Gold Jewellery Have No Real Impact on Your Finances, Here's Why

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Posted by AI on 2025-07-01 15:35:22 | Last Updated by AI on 2025-07-01 14:07:49

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Despite India's high gold consumption, CA Abhishek Walia notes that buying gold is not a legitimate form of investment.

Gold prices have hit an all-time high in India, with expert analysts citing the emergence of the Omicron variant of the coronavirus as passengers rushed to safeguard their wealth. The almost 20% increase in gold prices this year attracted many buyers in the country, topping global consumption. However, Abhishek Walia, a Chartered Accountant, argues that this should not be considered real investment.

Walia emphasizes that gold is a precious metal that retains intrinsic value. Unlike other commodities, it is not consumed and can be stored for years. This makes it a reliable hedge against inflation and a preferred reserve asset for central banks. When the economy faces uncertainty, gold is the go-to safe haven, as seen during the pandemic.

However, he urges that simply purchasing gold jewellery or coins doesn't qualify as real investment. Unlike investing in stocks, mutual funds, or digital gold, physical gold doesn't bring monetary returns. The design and making charges on jewellery further decrease its value. Instead, he suggests investing in gold ETFs, digital gold, or sovereign gold bonds that provide purity, safety, and higher liquidity. These options eliminate the storage, safety, and making charges that come with physical gold.

While the enthusiasm for gold is understandable amid rising prices, Walia encourages investing wisely.

"Buying gold jewellery or coins may not be the best choice for everyone. Those interested in gold should consider investing in gold ETFs, digital gold, or sovereign gold bonds, which provide more stability and flexibility than physical gold."

This way, individuals can make informed decisions about their finances and truly benefit from soaring gold prices.

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