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Tuesday, October 21, 2014

Will you Buy Gold this Dhanteras?

Dear Reader,

Saral Gyan Team wishes you Happy Dhanteras!

The festival of Dhanteras falls in the month of Kartik (Oct-Nov) on the thirteenth day of the dark fortnight. This auspicious day is celebrated two days before the festival of lights, Diwali.

Dhanteras is spent in worshipping Lord Yama – the god of death – to provide prosperity and well being. It is also the day for celebrating wealth, as the word ‘Dhan’ literally means wealth and ‘Tera’ comes from the date 13th. People flock to the jewelers and buy gold or silver jewelry or utensils to venerate the occasion of Dhanteras.

Legend behind the Festival:

An ancient legend ascribes the occasion to an interesting story about the 16 year old son of King Hima. His horoscope predicted his death by snake-bite on the fourth day of his marriage. On that particular day, his newly-wed wife did not allow him to sleep. She laid out all her ornaments and lots of gold and silver coins in a heap at the entrance of the sleeping chamber and lit lamps all over the place. Then she narrated stories and sang songs to keep her husband from falling asleep.

When Yama, the god of Death, arrived at the prince’s doorstep in the guise of a Serpent, his eyes were dazzled and blinded by the brilliance of the lamps and the jewelry. Yam could not enter the Prince's chamber, so he climbed on top of the heap of gold coins and sat there the entire night listening to the stories and songs. In the morning, he silently went away.

Thus, the young prince was saved from the clutches of death by the cleverness of his new bride, and the day came to be celebrated as Dhanteras. It is also know as ‘Yamadeepdaan’ as the ladies of the house light earthen lamps or ‘deep’ and these are kept burning throughout the night glorifying Yama, the god of Death.

The Myth of Dhanavantri:

Another legend says, in the cosmic battle between the gods and the demons when both churned the ocean for ‘amrit’ or divine nectar, Dhanavantri – the physician of the gods and an incarnation of Vishnu – emerged carrying a pot of the elixir. So, according to this mythological tale, the word Dhanteras comes from the name Dhanavantri, the divine doctor.

Significance of Dhanteras:

Dhanteras is famous as festival of shopping. On the occasion Dhanteras people buy Utensils, Gold or Silver coins, trendy jewelry, God’s Idol, Pooja Thali and Dhanteras Sweets. Several people purchase Gold or Silver coins containing emblems of Lakshmi, Ganesh, Om or Swastik.

Dhanteras, which is celebrated today on 21st October, 2014, is associated with buying gold to usher in wealth and prosperity. Over the past few years gold has metamorphosed from a glittering piece of jewellery to a valuable investment option. Even if you are a stickler for tradition, don’t just add to the gold rush by buying jewellery. There are better and more cost efficient ways to invest in Gold such as the Gold ETF.

What you need is just a demat account to buy units of Gold ETF. Most of you already have a demat account to buy / sell stocks. The same can be used to buy Gold ETF.

Few benefits of Gold ETF over conventional buying of Gold coins / jewellery are as under:

i) There is no storage cost. The ETF is kept in your demat account.

ii) No risk of impurities. At the same time, you don’t have to pay a premium for buying superior quality gold.

iii) You have the flexibility of buying gold in smaller lots through a DIYSIP (DO IT Yourself Systematic Investment Plan)

iv) You can easily sell ETFs unlike physical gold, which is often bought back at a discounted rate. In case of Gold ETFs, you get money close to the spot price of gold.

v) Physical gold and e-gold attracts wealth tax. No wealth tax applicable on Gold ETFs in India.

This Dhanteras, think different and make an auspicious beginning!

However, we at Saral Gyan continue to believe that its time to have significantly higher exposure in equities by investing in high quality stocks of small and mid caps instead of investing in gold to get better returns in medium to long term. 

With new government at its action, the road ahead seems promising for Indian equity market.  India’s Wholesale Price Index (WPI) based inflation dipped to 59-month of 2.4 in September 2014. The Consumer price inflation (CPI) also shed to 6.5 per cent in September, which are a promising signs. Significant fall in crude prices is going to help companies from various sectors like oil and gas, manufacturing - paint, plastic etc to deliver better margins. Morever, it will also help major automobiles to register better sales with pick up in demand considering fall in petrol and diesel prices.  

On this auspicious day, you can start a fresh new association with Saral Gyan by subscribing to any of our services. We will make sure that you truly create wealth in long run and this association may continue for ever. You can enjoy attractive discounts and freebies during this festive season, check out our Dussehra - Diwali Offer of the Year for details.

Wish you happy & safe investing!

Team - Saral Gyan