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India might top global gold consumption, but Chartered Accountant Abhishek Walia emphasises that purchasing gold doesn’t qualify as real investing.
He urges Indians to shift from tradition and choose options like Gold ETFs.
India remains one of the world’s top gold consumers, with jewellery continuing to drive the bulk of demand. In 2024, jewellery accounted for nearly 50% of India’s gold usage, reaching 563.4 tons, surpassing China’s 511.4 tons and reaffirming India’s lead in this segment.
According to Business Today, India’s overall gold demand rose to 802.8 tons in 2024, marking a 5% increase from 761 tons in 2023. This uptick was supported by strong jewellery purchases and a surge in investment interest amid rising gold prices.
Financial experts advise caution. Chartered Accountant Abhishek Walia points out that many Indians tend to mistake cultural gold buying for sound financial investment, blurring the line between tradition and strategy.
“Gold is deeply embedded in our culture and traditions, especially around weddings and festivals,” says Walia on LinkedIn. “But financially, it’s not always the smartest way to grow your wealth.”
He notes that while gold holds value, it doesn’t generate returns like other assets. “Unlike stocks that pay dividends, property that earns rent, or bonds that generate interest, gold just sits in a locker,” Walia says.
One key concern is the cost of buying jewellery. “People don’t realise that 20-30 per cent of their money is lost immediately to making charges,” Walia points out. “If you’re buying jewellery thinking it’s an investment, you’re starting at a loss.”
He also highlights issues of liquidity and safety. Converting physical gold to cash can be tricky due to purity checks and dealer cuts. “Gold isn’t as liquid as people believe, especially if you want to get full value quickly,” he adds.
Storing gold at home also poses risks. “Families often have gold worth lakhs tucked away in lockers, uninsured and untracked. That’s risky wealth management,” warns Walia.
For those looking to invest in gold, Walia recommends a more practical approach. “Buy gold for emotional reasons or safety—but don’t mistake that for financial investment,” he says.
He suggests Gold ETFs as a better option. “Gold ETFs give you price exposure without storage hassles and making charges. They’re liquid, transparent, and cost-effective.”
Walia advises investors to diversify: “Gold should be part of your portfolio—but not the entire plan. Equities, mutual funds, and retirement schemes like NPS can help your money grow. Investing is about building wealth, not just holding tradition.”
Check Abhishek Walia’s post here:
Meanwhile, gold prices showed a strong recovery on the last day of Q1 after a sharp dip, as per Business Today. On Monday, prices rose by Rs 550 per 10 grams to Rs 96,014 on MCX, after a Friday plunge of nearly Rs 1,500.
The rebound followed declines in global markets and Indian equities, where the Sensex reportedly fell 452 points and the Nifty dropped 121, prompting investors to turn to gold as a safer bet. This bounce reflects gold’s ongoing appeal during market volatility, reinforcing its role as a hedge against uncertainty.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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Delhi, India, India
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