Akshay Tritiya, also known as Akha Teej is a significant festival in Hindu culture. Celebrated on the fortnight of the lunar month of Vaishakha, Akshay Tritiya is celebrated through performance of various religious rituals, charity, such as offering community meals to the poor, and most importantly, purchasing gold for prosperity and good luck.
Traditionally, people bought gold in the form of jewellery, coins and biscuits, but now with digitisation, paper gold or digital gold has also become popular. Digital gold has become popular with investors, as it can be bought online and there is no need for storage, thus offering security from theft or loss.
Changing Trend of Buying Gold on Akshay Tritiya
Sanket Prabhu, director and head of wealth at Finhaat shared his views how gold buying habits have changed with time.
“Gold buying habits have undoubtedly changed. The essence of Akshay Tritiya as an auspicious day to buy gold remains, but the format has evolved,” he says.
He added that gold buyers residing specifically in urban areas or young investors of today go for digital gold over physical gold, thus combining tradition with convenience. Prabhu further highlighted, that this offers bank-grade vault safety, 24K purity with National Accreditation Board for Testing and Calibration Laboratories (NABL) certification, and easy online access, making it a modern way to honour an age-old tradition.
Fight between Traditional and Digital Ways
Digital gold, gold exchange-traded funds (ETFs), and gold sovereign gold bonds (SGBs) are flexible alternatives that Gen Z and millennials are choosing over physical gold, whether in the form of jewellery, coins or biscuits.
To further explain the inclination of buying digital gold in form of ETFs and SGBs, he listed points for why the new generation is attracted to it. The attractions are:
Digital gold has no live pricing and no storage fees
The entry point or the minimum value to buy gold is affordable (starting at Rs 100), which makes it appealing.
These characteristics align nicely with the financial objectives of a generation that places a high importance on transparency and liquidity.
Online Gold Buying
Online platforms and apps are revolutionising gold purchases during festivals like Akshay Tritiya by offering convenience. They also offer competitive pricing, and various payment options which makes it more desirable to the customer. Digital apps are also making it easier for consumers to invest without visiting physical stores.
Adds Prabhu: “The process of buying gold has been redesigned by digital platforms.”
Customers can purchase 24K gold with a few clicks, choose for physical delivery, or redeem it at specific jewellery stores. He added that due to the presence of these apps, gold buying during festivals is now quicker, safer, and more accessible, too
Gold’s Rising Price Vs Purchasing Pattern
The traditional ways of buying gold has taken a backseat because of price, and digital platforms, which offer micro investment options, has changed the trend.
Says Prabhu: “As prices climb, buyers are more cautious. There’s a tilt towards fractional buying, often enabled by digital gold platforms that allow micro investments. The ability to buy gold for as little as Rs 100 and sell it anytime gives buyers more control and comfort, even in a high-price environment.”
Prabhu also said that trend of micro investment has started endorsed purchase of gold in smaller amounts than before yet frequency has increased.
“Thanks to digital options, consumers are making more frequent, smaller purchases instead of big one-time spends. This also helps them average out prices over time,” he adds.
Shift from Ornamental Gold Purchase to Investment Grade Gold
Prabhu said with rising gold rates, many buyers are steering clear of heavy jewellery that involves making charges and lower resale value. He said that coins, bars, and digital gold have become preferred choices for those looking for purity, liquidity, and better returns.
Diversification Beyond Gold
Festival and traditions aside, gold is a good asset class to add diversification to your portfolio.
Says Prabhu: “They are helping investors see gold as one piece of a broader financial puzzle.” He says that while Akshay Tritiya still sparks interest in gold, advisors often guide clients towards systematic investment plans (SIPs) in gold ETFs or SGBs and highlight the security, liquidity, and storage-free benefits of digital gold.
But will digital gold ever fully replace the cultural practice of buying physical gold on festivals? Prabhu shares his personal views on the matter.
“Not entirely, but it will co-exist meaningfully,” he says.
He said that the option of digital gold offers investors to buy pure, NABL-certified gold online and later convert it into jewellery. This additional benefit allows people to respect the tradition of buying gold while making financially sound choices.
“Digital gold is redefining how we honour tradition,” Prabhu adds.
