Why Gold Continues To Shine On Dhanteras: Tradition Meets Investment In 2025

As Dhanteras draws near, gold has once again captured the attention of buyers across India. Traditionally, the festival is seen as an auspicious day to buy gold, and is believed to bring prosperity, wealth, and good fortune for the year ahead. Beyond its cultural value, gold has long been seen as a safe haven asset, as historically, it has proven its mettle in preserving its value during periods of economic uncertainty and market volatility. This combination of cultural significance and financial security makes gold a preferred choice for households looking to blend ritual with long-term investment.

Dhanteras marks the start of the Diwali festivities and is considered an extremely auspicious day to buy gold, silver, or even household utensils.

Aksha Kamboj, Vice President of IBJA, says: "In Indian households, gold is considered more than just an investment. It is a symbol of culture passed down from generations." The festive season continues to reaffirm this sentiment, she says, adding that emotional and spiritual value often outweighs market fluctuations.

Cultural Traditions Matter

This year, gold prices are at record highs. On October 15, MCX gold futures touched Rs 1,27,740 per 10 grams. According to Goldprice.org, gold has surged nearly 64 per cent over the past year, outperforming equities and many other assets.

Despite the strong rally, gold continues to shine during festivals like Dhanteras, largely because buying gold has been a long-standing tradition in India.

Shivani Nyati, Head of Wealth at Swastika Investmart, explains, "This tradition is centuries old and deeply tied to the story of Goddess Lakshmi, the Hindu deity of wealth, and Lord Dhanvantari, who emerged from the ocean with a pot of gold during the Samudra Manthan. Even when gold prices are high, many people still purchase at least a small token like a coin, ring, or pendant to uphold the tradition. The emotional and cultural value often outweighs market factors, which leads to a consistent rise in demand every Dhanteras regardless of gold's spot price."

Physical Gold Still A Popular Option

Today, people have several options when it comes to buying the yellow metal. Apart from physical gold, there are options like gold exchange traded funds (ETFs), gold-backed mutual funds, digiral gold, and sovereign gold bonds (SGBs). However, physical gold is still popular among buyers in India due to several reasons, as experts point out.

Niyati says: "Physical gold offers immediate, visible ownership, something you can touch, hold, and use. It feels safer emotionally, even if it is not the most efficient financially."

For many, jewellery is not just an asset; it is a symbol of heritage and prosperity. "Physical gold is an expression of wealth and prestige and provides an immediate sense of security and pride that digital instruments cannot replicate," Kamboj says.

"For many, purchasing from trusted local jewellers also feels safer and more personal than digital investment options," says Ross Maxwell, Global Strategy Lead at VT Markets.

New Generation Redefining Gold Buying Tradition

Younger investors are giving gold a new dimension, blending tradition with technology. While older generations primarily saw gold as a symbol of wealth and security, millennials and Gen Z are increasingly viewing it as both an investment and a lifestyle choice. Kamboj says, "They see gold as a safe haven plus lifestyle statement that aligns with both their digital and cultural identity."

However, Nyati believes that the younger generation is more financially minded. She says, "Older generations traditionally saw gold as a symbol of security, wealth, and tradition, something to gift, wear, and pass down. In contrast, younger buyers often treat gold as a financial asset, evaluating it for returns, convenience, and liquidity rather than its ritual value. They are less emotionally attached to the metal and more focused on its role in portfolio diversification."

Ross Maxwell adds that even when younger buyers purchase physical gold, their preferences differ from those of previous generations. He says, "Their purchases of physical gold lean toward lightweight, and versatile designs rather than heavy traditional jewellery. While younger buyers may not share the same emotional attachment as their parents, they still honour traditions by making small symbolic purchases during festivals."