As Diwali approaches, jewellers across India unveil special offers with enticing discounts on jewellery pieces to attract customers. Many investors and buyers eagerly anticipate for such discounts at this time of year to either make investments in gold or gold jewellery during Dhanteras prior to Diwali, as it is deemed ‘auspicious’ to initiate such financial transactions on the day.
Dhanteras is seen as a special time for making investing in gold as an initiation towards attracting wealth and prosperity. Investing in jewellery during this period is seen as culturally significant because it’s thought to bring good luck and wealth, especially when starting financial ventures involving gold and jewellery.
For instance, many popular jewellers, such as Tanishq, Candere, Joylukkas, and Carat Lane are rolling out tempting offers to attract customers this festive season. Tanishq, for instance, is offering a substantial 20 per cent discount on making charges for both gold and diamond jewellery. Additionally, it is offering a 100 per cent exchange value on old gold, regardless of where it was originally purchased. For SBI cardholders, there’s an extra perk with an instant Rs 4,000 discount on a minimum transaction of Rs 80,000. This offer is valid for one transaction per card and remains available until November 12, 2023.
If you are in the market for jewellery, these offers could be worth checking out.
However, the question remains: Is it genuinely beneficial to invest in gold or take advantage of these promotions during this period? Let’s delve into the matter and explore.
Here are the things you need to keep in mind before going for these offers.
Value:
Don’t be blinded by the discount sparkle. Make sure that the jewellery you pick is not overpriced and actually worth its value in terms of the money you spend. You would actually want pieces that will last and stay stylish.
“Most of these offers are to entice buyers for sure. Making charges, other hidden charges etc. could make these a really bad idea whilst seeming like a good one,” says Shweta Jain, founder of Investography.
Set A Spending Limit:
Festive excitement can make us forget our budgets. Decide how much you are willing to spend before you hit the stores. This way, you won’t end up with a financial hangover after the celebrations.
Says Suresh Sadagopan, founder and principal of Ladder7 Financial Advisories, a financial planning firm: “The first thing one needs to understand is if they are buying gold jewellery which is a consumption item and not an investment. They need to understand this first. After that, they need to spend what they have budgeted for during Deepavali and Dhanteras.”
Shop Around:
Just like you compare prices for gadgets or clothes, do the same for jewellery. Check different jewellers, compare prices, and be sure you are getting the best bang for your buck.
Think Long-Term:
Consider if the jewellery is an investment. Will it still be valuable in the future? Thinking ahead can help you make a smarter decision.
Dhanteras is a time to make wise money moves. Consider investments, not just spending. According to experts, jewellery may seem like a nice purchase, but remember that making charges can take up around 25 per cent, and when you sell it, you might lose another 10-15 per cent. So, if you are buying jewellery for the joy of having it or as a gift, that’s fine, especially with the current offers from jewellers. But keep in mind, it’s not the best way to grow your wealth in the long run.
However, if you want to invest in gold, you could consider several options such as sovereign gold bond (SGB), gold exchange-traded funds (ETFs), and gold mutual funds, or even pure gold bars.
“If one wants to buy jewellery as part of the festivities, it is an expense item and should be treated as such. If one wants to invest in gold physically, it can be through bullion (gold coins and bars). If one wants to invest in gold through financial instruments, then they could consider ETFs or gold funds,” says Sadagopan.
