However, experts also warn that if a COVID-19 vaccine is developed and economic activity picks up, then there could be a major correction in gold prices.
Buying gold as a coin or in some form of jewellery on the occasion of Akshaya Tritiya, an auspicious time for Hindus and Jains, is always considered as a good start and there are beliefs that it brings unending prosperity.
But this time the situation is different compared to last year. The nationwide lockdown due to the novel coronavirus pandemic has made it difficult for people to buy gold physically as all shops, barring essential services, are closed.
In 2019, around 33 to 35 tonnes of gold were sold on the Akshaya Tritiya. But in last two months, import of gold in India has plunged by over 73 percent year-on-year. In March, India imported just 25 tonnes of gold against around 94 tonnes during the same period last year.
That does not mean that people do not have any option. In fact, in the digital world, people should not get disappointed as they have multiple options through which they can purchase gold. This includes buying gold ETFs from an exchange; sovereign gold bonds; gold coins, bars and jewellery online.
On top of that, gold is always considered a safe haven because the yellow metal helps you the most in critical times, as it can be sold off.
People have been moving towards gold at a time when there is economic uncertainty due to the COVID-19 pandemic globally.
Hence, gold prices have rallied 47 percent from Rs 31,500 per 10 gram levels during the Akshaya Tritiya to trade around Rs 46,500 now. Experts feel that the rally is expected to continue in the coming year.
According to experts, gold can touch Rs 52,000 per 10 gram in India or $2,000 per troy ounce in the international market in coming months given the recessionary fears on the global front, though there could be intermittent correction.