Gold Prices Break The Roof A Day Before Dhanteras, Here’s Why Indians Still Want To Buy It

By Sanjiv Bajaj

It’s Dhanteras evening. Across India families are heading to jewellery stores, wallets in hand, hearts full of tradition and a quiet sense of financial prudence. A young couple I recently met had decided to buy a small gold coin, not just for ritual, but as a symbol of security for their daughter’s future. Around them, people queued with similar intent: to welcome Goddess Lakshmi into their homes with the timeless shine of gold.

In 2025, gold isn’t just gleaming in stores, it is also making headlines. As of October 17, the domestic price has already crossed Rs 1.30 lakh per 10 grams, marking a historic high. Globally, gold surpassed $4,000 per ounce for the first time, driven by inflation concerns, geopolitical tensions, and shifts in investor behavior. This surge is more than a fleeting spike: in India, gold has appreciated over 50 per cent in 2025 alone, outpacing other asset classes and reaffirming its enduring value.

Tradition Meets Financial Wisdom

Buying gold on Dhanteras is an age-old ritual, but it has always carried practical wisdom. The belief is simple: whatever you acquire today grows manifold. History supports this. Over the past decade, gold in India appreciated nearly 120 per cent, providing a reliable hedge against inflation and market volatility. Unlike equities or bonds, gold offers a tangible sense of security, often acting as a family’s first line of defense in times of financial stress.

A 2025 study, ‘Gold Price Trends in India Before and After the COVID-19 Pandemic: Economic Drivers and Investment Behaviour’, confirms this evolution. During periods of economic uncertainty, investors increasingly moved away from physical jewellery into financial forms such as gold ETFs and bonds. The study highlights gold’s shift from a purely ornamental asset to a strategic financial tool, showing its dual role in cultural tradition and modern wealth planning.

The Emotional Value of Gold

Gold’s appeal extends far beyond numbers. It carries deep emotional significance. Unlike a stock certificate or digital asset, gold is tangible; you can hold it, store it safely, and pass it to the next generation. This tangibility builds trust, which is why even younger, digitally savvy investors are warming up to digital gold and gold ETFs. While the form may change, the confidence and reassurance that gold provides remain steadfast.

Moreover, gold often carries family stories, memories, and values. A coin gifted during Dhanteras is not just a purchase, it’s a way of instilling financial awareness in children and a quiet lesson in wealth preservation wrapped in tradition.

Gold as a Hedge in 2025

In today’s context, gold is also a smart financial hedge. With global interest rates softening, inflationary pressures persisting, and geopolitical risks simmering, investors are allocating 10-15 per cent of their portfolios to gold. For families, this provides peace of mind: whether markets soar or stumble, a slice of their wealth remains protected. Its resilience, liquidity, and historically consistent appreciation make gold an essential component of a well-rounded portfolio.

From Ritual to Strategy

Dhanteras is not just about buying gold for tradition. It is an opportunity to blend culture with financial prudence. Whether you choose a coin, jewellery, or a gold ETF, the act carries symbolism but also strategic value. Gold adds stability to your portfolio, offers liquidity during emergencies, and preserves wealth across generations.

Here’s a simple checklist to consider this Dhanteras:

• Wealth Preservation: Acts as a hedge against inflation and currency fluctuations.
• Cultural Significance: Honors tradition and invites prosperity into your home.
• Long-Term Investment: Historical appreciation makes it reliable over decades.
• Portfolio Diversification: Provides balance and reduces risk during volatile periods.

As you light your diyas this Dhanteras, remember that gold is more than an ornament. It is resilience in your portfolio, a bridge between generations, and a reminder that some traditions carry timeless financial wisdom. Buying gold today is not just about honoring the past, it is about securing your future, blending culture with strategy, and creating a legacy that shines both emotionally and financially. For every diya lit and every coin purchased, there is the quiet assurance that tradition and prudence can walk hand in hand even in the most uncertain of times.

(The author is Joint Chairman and MD at BajajCapital)

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