Akshaya Tritiya has traditionally been a time for gold buying, but investor behaviour is increasingly shifting from sentiment-driven purchases to strategy-led allocation. With gold prices having surged nearly 60% over the past year and delivering ~435% returns over nine years, the key question is no longer whether to buy gold, but which route offers the smartest investment advantage.

Today, investors can choose between Sovereign Gold Bonds (SGBs), Gold ETFs, and physical gold—each with distinct advantages and limitations.

Sovereign Gold Bonds

SGBs remain one of the most efficient gold investment instruments on paper. They offer 2.5% annual interest along with gold price appreciation, making them attractive for long-term investors. Additionally, capital gains are tax-free if held till maturity (8 years), and the instrument carries sovereign backing.

However, the current market environment has reduced their appeal. With no fresh issuances, most investors are forced to buy SGBs from the secondary market, where tax benefits may not fully apply and liquidity is limited.

As Hariprasad K of Livelong Wealth explains, “While SGBs remain ideal in theory, the current market setup tilts the balance away from them due to limited liquidity and reduced tax benefits in secondary market purchases.”

Gold ETFs

Gold ETFs have emerged as the most practical and flexible option, especially in volatile markets. They provide direct exposure to gold prices without the challenges of storage, purity, or security.

Hardaman Singh Seth, Head Business - ETF Business, Mirae Asset Investment Managers (India), said: "The popularity of ETFs as a medium to buy Gold is going up every year. Since the first launch of Gold ETF in 2007, the AUM of this category has jumped to Rs 1,71,468 crore (AMFI Data as of 31st Mar 26). In fact, for the FY ended 2026, Gold ETFs (including Fund of Fund) recorded a large net inflow of around Rs 70,000 Cr. Investors have realised that buying Gold through ETFs is a low cost, hassle free and convenient process which allows them to buy and sell Gold in very small quantities without any fear of quality or purity of the underlying metal. Also there is no storage or insurance cost associated with Gold ETFs and it can be conveniently bought and sold through the stock exchange."

The key advantage of ETFs is liquidity -- they can be traded anytime, making them ideal for tactical allocation and portfolio rebalancing. While they do involve expense ratios (0.5–1%) and brokerage, their convenience and flexibility often outweigh these costs.

Physical gold

Physical gold continues to dominate festive buying due to its emotional and cultural value. However, from an investment standpoint, it is the least efficient option.

Making charges, GST, storage costs, and resale inefficiencies significantly reduce returns. Additionally, risks related to safety and purity remain.

Buying gold on Akshaya Tritiya 

Seth further adds: "Precious metals in India can either be bought through the MCX or through the ETF route, if one is looking to buy Gold and Silver. Currently in India, only Gold and Silver ETFs are allowed by the regulator. Amongst the precious metals, Gold is a metal that is bought not only by people across the world for different reasons but also by institutions like Banks. An investor should look at Gold as a part of his/her asset allocation owing to its inherent status as core safe-haven holding. Silver, on the other hand, has a dual role: both as a precious metal as well as an industrial metal of importance. It has been historically more volatile than Gold and structural deficits in silver have accumulated to nearly 800 million ounces over five years, reinforcing tightening conditions. Hence, investors looking at exposure to these precious metals can use the ETF route to add these metals as a part of their asset allocation. ETFs offer a very convenient and cost effective way to accumulate these precious metals in one’s portfolio."

Final verdict: What should you choose?

SGBs: Best for long-term investors—if primary issuance is available
Gold ETFs: Best suited in the current market for liquidity, flexibility, and ease
Physical gold: Suitable for jewellery and cultural purposes, not investment

Published on: Apr 17, 2026 6:50 AM IST