Don’t Let FOMO Drive Your Gold Purchases This Akshay Tritiya

Akshaya Tritiya has been synonymous with gold buying. Across India, it marks a moment of material and spiritual prosperity, often observed as a good day to embark on new ventures and buy something new.

In today’s time, it’s not just gold coins and bars glinting in shop windows, you would also find digital fintech applications buzzing with notifications, and for many, it’s the perfect excuse to add a little more of the yellow metal to their portfolio, one way or the other.

However, this year, gold has been pretty expensive. Recently, the price of gold touched Rs 1 lakh per 10 grams and if you are feeling the urge to ‘not miss’ out’, you may not be alone. Financial planners are also warning people against panic or irrational buying – an emotional response rooted less in planning and more in Fear of Missing Out (FOMO).

Abhishek Kumar, a Security Exchange Board of India registered investment advisor (Sebi-RIA), took to LinkedIn with a timely caution, “Gold’s up 44 per cent in a year, but that doesn’t mean it’s time to throw caution out of the window.”

He said, “Years ago, I loaded up on gold just because everyone else was doing it. It didn’t end well.”

The Psychology of Peaks

The price of gold tends to peak during periods of uncertainty, be it geopolitical tension, rising inflation, or currency instability. And such peaks often attract retail investors hoping to ride the wave, to gold. But when the market cools, regret is quick to follow.

“I’ve seen people rush to buy at peaks and sell in fear-only to regret it later,” Kumar adds.

Focus on Asset Allocation

Instead, he recommends focussing on asset allocation rather than speculation. If gold makes up less than 10 per cent of your portfolio, there is no need to rush in. One should focus on buying in small, disciplined chunks, particularly during market corrections.

“Don’t let headlines drive your decisions,” he says.

Digital Gold is Gaining Ground

Such advice is even more important for the younger generation who are not shying away from gold. A report by Outlook Money previously noted that 65 per cent of millennials prefer digital gold over traditional purchases.

Read More: Digital Gold vs Traditional, What Millennials Prefer?

Their decision is majorly driven by convenience, lower entry points, and fractional ownership.

Unlike jewellery or gold coins, digital gold has emerged as an investment option which starts from as little as Rs 10. It is backed by 24k gold and stored in insured vaults, minus the burden of storage or security. Urban consumers with higher digital literacy are leading this trend, but rural users are also not far behind.

However, there is one key aspect to be mindful of when investing in ‘digital gold’. In India, digital gold is not yet directly regulated by any single authority like the Reserve Bank of India (RBI) or Sebi. Though the platforms offering digital gold are required to comply with know your customer (KYC) norms and other regulations related to the storage and redemption of gold. At present, there is no specific government-run body that oversees digital gold transactions.

So, before the FOMO hits the younger generation to join the bandwagon of digital gold investments, it is important to be wary as well as cognisant of this regulatory backlog as well.

Focus on Small Allocation, Not Hype

Experts insist that gold should serve a role in the portfolio, not dominate it. “There’s no magic number,” Kumar says, adding that the allocation should depends on your long-term goals, not on what your neighbour or social media friend is doing.

Gold has historically worked well as a hedge against inflation, currency depreciation, and equity market downturns. However, overexposure, especially when driven by emotion or peer pressure, can backfire.

So this Akshay Tritiya, by all means one should buy gold, but only if it fits into your financial plan. It is always better to not let FOMO dictate your investment choices. As Kumar puts it simply, “Policy changes, global drama, and currency swings will always create noise. Ignore it. Stick to your plan.”