Investing in Gold this Diwali?
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Ever since I can remember, our family has been purchasing gold on dhanteras, since it’s considered auspicious. In fact, even the stock market has a “muhurat trading” session on the day of Diwali, when people can buy or sell stocks.
But I recently read an interesting story which said that an investment made on Diwali mostly underperforms the investments made on any other day. I thought it’d be good to share this with our community!
Before that, here’s wishing you a very happy Dhanteras and Diwali! I hope you (like me) will eat lots of mithai and not burst crackers 😁
Now, coming back - The study done by Mint analyzed 1-year returns of Nifty 500 and Gold during the last 10 years (No it’s not a typo - it was done for Nifty 500).
And here’s what it shows:
As can be seen above, 60% of the times, stock investments made on Diwali or gold purchased on Dhanteras underperformed the same investments made on any other day in the same year. So while this may be an auspicious thing to do, don’t expect better returns for investments made on these days. The returns aren’t any better; in fact, 60% of the times, they’re worse.
Now, these are just 1-year returns (not long term). But that’s okay - it’s an apple-to-apple comparison, because it compares ALL investments made that year, even if it is for a one-year horizon. The idea of the study is not to see whether these investments gave good returns, it is to compare the returns given by investments made on Diwali/Dhanteras v/s any other day, for the same duration of time.
And unfortunately, it shows that returns for investments made on these days are lesser than the returns for other days.
But having said that, I’m still going to continue purchasing gold on Dhanteras. There’s more to life than ROI, and the joy of keeping tradition alive can’t have a number to it 😊
If you’re also considering buying gold today, do check out the article on gold purchase in the “Related Reads” section below
And if you liked this piece, let me know what you think of it, and do share it with folks around!
Hope you have a wonderful Diwali! 🍨