7 reasons you must buy gold this Akshaya Tritiya

These are golden lessons learned from our elders over the years, says Sumit Rajwade.

My interest in following precious metals started when our family once sat across the table discussing marriage preparations in the family. I heard sentences like:

"Oh! we have to spend money on so many things apart from gold. We have 20 tolas (1 tola ie equal to 10 grams so 20 tolas make it 200 grams) of gold and also a gold jewellery set which we purchased a few years back. I will get the set polished and use the 20 tolas to get the rest of the ornaments done along with the cost of making them."

I saw a sense of relief on everybody's faces. But it made me very curious as why it's so important to cross the item called "buy gold jewellery" with little or no cost.

I asked a question which I thought made sense. But the reactions indicated that it was quite a "stupid" question to ask. I asked, "Why give gold at all? We can just buy the Mangalsutra and the rest can be given in the form of bonds or fixed deposits. It will be useful to the couple later."

One sagacious family matriarch then explained the importance of giving gold on auspicious occasions. She went back in history explaining how they used to buy little pieces, rings, chains of gold on auspicious days such as Akshaya Tritiya, Dussera or Dhanteras and how it has paid off today. I asked again, "But, on these days gold is always priced higher. Why will you not buy it on any other day?"

In response, she explained how gold should be worshipped as it is the currency from Gods and it must carry their blessings. She endorsed it by saying that every Dhanteras, they get all the gold from their bank lockers and worship it by keeping it in front of the Gods.

Today, almost a decade later, on this day of Akshaya Tritiya, I thought I should pass on all the wisdom passed to me (like rishis used to pass the wisdom in their gurukuls) and my own reading about the glittering metal.

There are many reasons to buy gold, but following 7 appealed the most to me:

1. Gold is the best investment one can make. It has never fallen in value over the long term. But make sure you always buy the purest form (23 carat and above) when it is bought as investment. Make sure you don't buy ornaments if you are buying it for investment puposes. When it comes to selling ornaments in future, emotions play a big role.

2. Gold has a great ornamental value. It is used on all occasions to "showcase" wealth and prosperity.

3. Its smaller size makes it a better investment over its cousin brother silver. Gold can be easily kept in safes, lockers. I have read about how people used to smuggle gold chains through powder and shampoo bottles from Dubai. Quite innovative.

4. It never fades over time. Gold does not lose its value over time. This applies to gold as investment as well as it being of ornamental value. I specifically studied the ornaments which are three generations old, two generations old (I mean 30 to 60 year old) and I figured out that the weight has reduced over time.

The quality of gold itself has gone down. While design plays a lead role, material quality has taken a back seat. So, the thumb rule is, think twice before breaking your old ornaments. Remember, style repeats after few decades.

5. It's the best way to gift near and dear ones. I have always seen close family members gift gold. It's the best way for them to showcase the value of relationship.

6. It is auspicious. Imagine keeping cash at home. People will feel you have lot of income from unaccounted sources. Turn it into gold. They will feel you are very wealthy. It is crazy but it works this way.

7. Finally, the one I like the most.

Its THE currency of the world. You can go to any country in the world, or any town in India and you can exchange gold for liquid cash in case of an emergency. We have been seeing it in movies all the time. My mother gave me a gold ring when I went to hostel for higher studies. I asked why and she said, "It's for an emergency, so that you will have enough money to come back home." Amazing!

There are many more reasons to buy gold and few why you should not to buy it. But, at the end of it, it is the glitter which makes all the difference!

Happy buying!