Mangalore : The third day of the Vaishaka month in the Hindu calendar is called Akshaya Tritiya. Akshaya Tritiya and Dhanteras have been the two days that Indians traditionally buy gold for religious purposes. Well, in all fairness, Indians need no excuse to buy gold. Akshaya Tritiya provides the perfect moral sanction to splurge on gold jewelry, bricks, and coins. In the Mahabharata, the Lord Sri Krishna handed the Akshaya Patra to the Pandavas with a promise that their wealth would never diminish and that their coffers would forever remain full. The gold bought on this day will increase manifold, it is believed, and gold has been India’s traditional symbol of wealth and plentitude. This year Akshaya Tritiya falls on May 2, Friday. This is considered all the more auspicious since Friday is all the more suited to buying the metal. This year, however, the sheen seems to have worn off the precious metal and the usual discounts, offers, and other hoopla are conspicuously absent.
Gold Trends
Gold has always been India’s favorite investment option. This explains why India was the world’s largest importer of gold till 2012. In 2012, India imported a whopping 860 tonnes of gold but 2013 was not a good year for the metal. A burgeoning trade deficit and weak rupee has spurred serious curbs in the import of gold by traders and merchants causing a sharp drop in the import levels. The prices too seem to be floundering on global cues. The first quarter of 2014 has seen a weak trend, and short-selling of the bullion. While admittedly in India, gold is not a mere investment option. Gold is bought compulsively for a variety of reasons and not merely for its returns. This means that the spot prices are likely to be higher than futures prices and gold buyers often end up paying a premium amount to receive physical delivery of the metal. And yet prices are unlikely to see any major hike soon.
What Are My Options?
The country’s national obsession is the yellow metal – we buy gold for investment purposes, for social reasons, for ritual purposes, as adornments, gifts, and keepsakes. Gold may now be bought in different forms – as jewelry, coins or bars, as Exchange Traded Funds (ETF) or as gold fund of funds (FoFs). ETFs and FOFs are recent developments in the Indian markets and have clear advantages for the serious investor. The security of the gold is way higher in ETFs and FOFs since physical gold is liable to damage and loss including theft. The purity and quality of gold are not worries that an electronic investor needs to concern himself with but in a country like India where physical buyers tend to believe, rather blindly, the neighborhood jeweler, the guarantee of purity on physical gold is rather low. In case of ETFs and FoFs the investor may recover almost the entire amount at the time of sale but not in the case of physical gold. Also, in some cases physical gold attracts wealth tax but not electronically traded gold. One clear advantage for those buying physical gold is that they will be eligible for a capital gains tax of 10% only if the holding is beyond three years while those holding ETFs for over a year will need to pay the tax on profits made over a year. Now with a plethora of options, let us look at the Akshaya Tritiya forecasts.
Reign It In
The glint of the much coveted yellow metal seems to have dulled in the past months. The bull cycle that gold saw about 3 years ago now looks like a distant memory. Those who invested in the metal last year on Akshaya Tritiya have seen an appreciation about 12.3% but financial experts are warning against any serious gold purchases as investment in the current market scenario. If you are an individual buying gold coins in small quantities or investing in ETFs or FOFs (also in small quantities) seems to be the best bet. Predictions are that gold prices are likely to fall further with a strengthening Rupee, once the new government comes to power. Bullion sentiments are weak and are unlikely to show any sharp spurt in the next year or two. It is also quite likely that gold prices may go in for a sharp drop following a bit of a rally due to the Ukraine crisis, experts predict.
This Akshaya Tritiya, instead of investing in gold you may want to donate to bona fide charitable causes – the risks are few and the gains unparalleled.
Hindus believe in the theory of “mahurats” or auspicious timings in every step in life – be it to begin a new venture or making an important purchase. Akshaya Tritiya is one such momentous occasion, which is considered one of the most auspicious days of the Hindu Calendar. It is believed, any meaningful activity started on this day would be fruitful.
Once a Year
Akshaya Tritiya falls on the third day of the bright half of Vaishakh month (April-May), when the Sun and Moon are in exaltation; they are simultaneously at their peak of brightness, which happens only once every year.
Holy Day
Akshaya Tritiya, also known as “Akha Teej”, is traditionally the birthday of Lord Parasurama, the sixth incarnation of Lord Vishnu. People conduct special Pujas on this day, bathe in holy rivers, make a charity, offer barley in a sacred fire, and worship Lord Ganesha & Devi Lakshmi on this day.
The Golden Link
The word “Akshaya” means imperishable or eternal – that which never diminishes. Initiations made or valuables bought on this day are considered to bring success or good fortune. Buying gold is a popular activity on Akshaya Tritiya, as it is the ultimate symbol of wealth and prosperity. Gold and gold jewelry bought and worn on this day signify never diminishing good fortune. Indians celebrate weddings, begin new business ventures, and even plan long journeys on this day.
Myths Around Akshaya Tritiya
The day also marks the beginning of the “SatyaYug” or the Golden Age – the first of the four Yugas. In the Puranas, the holy Hindu scriptures, there is a story that says that on this day of Akshay Tritiya, Veda Vyasa along with Ganesha started writing the great epic Mahabharata. Ganga Devi or Mother Ganges also descended on earth on this day.
According to another legend, during the time of the Mahabhrata, when the Pandavas were in exile, Lord Krishna, on this day, presented them an ‘Akshaya Patra,’ a bowl which would never go empty and produce an unlimited supply of food on demand.
The Krishna-Sudama Legend
Perhaps, the most famous of the Akshaya Tritiya stories is the legend of Lord Krishna and Sudama, his poor Brahmin childhood friend. On this day, as the tale goes, Sudama came over to Krishna’s palace to request him for some financial help. As a gift for his friend, Sudama had nothing more than a handful of beaten rice or ‘poha’. So, he was utterly ashamed to give it to Krishna, but Krishna took the pouch of ‘poha’ from him and relished having it. Krishna followed the principle of ‘Atithi Devo Bhava’ or ‘the guest is like God’ and treated Sudama like a king. His poor friend was so overwhelmed by the warmth and hospitality shown by Krishna, that he could not ask for the financial favor and came home empty handed. Lo and behold! When he reached his place, Sudama’s old hut was transformed into a palace! He found his family dressed in royal attire and everything around was new and expensive. Sudama knew that it was a boon from Krishna, who blessed him with more than the wealth he actually intended to ask for. Therefore, Akshaya Tritiya is associated with material gains and wealth acquisition.
Bright Births
It is also believed that people born during this time shine bright in life. Many luminaries were born during this period: Basaveshwara born on May 4, Ramanujacharya and Adi Shankaracharya on May 6, Swami Chinmayananda on May 8 and Lord Buddha on May 16. Akshaya Tritiya is also celebrated as the birthday of Lord Parashurama, one of the ten avatars of Lord Vishnu.