According to financial analysis, while Dhanteras gold purchases feel like investments, they function more as consumption activities. The primary purchases on Dhanteras are jewellery with significant making charges that disappear immediately after purchase, or coins that remain in rented bank lockers incurring ongoing costs. As reported by financial experts, this behavior differs fundamentally from other investment activities, where no one purchases mutual funds or stocks on specific auspicious days. The festival tradition masks what would otherwise be considered absurd investment behavior in other contexts.
Recent RBI data reveals the significant scale of gold-backed lending in India. Banks alone held approximately ₹5 lakh crore in gold jewellery loans outstanding as of May 2026, representing roughly double the previous year's figure. When including NBFCs, the total crosses ₹8 lakh crore, with lenders typically lending only 75-85% of gold's value. This means the actual jewellery value behind these loans exceeds ₹11 lakh crore, significantly surpassing India's equity mutual fund holdings of ₹37.5 lakh crore according to AMFI data.
Financial experts now recommend Gold SIP (Systematic Investment Plan) as the smartest way to save for wedding jewellery or festivals, as it averages out gold prices over time. At Londe Jewellers Gold & Diamonds, customers can invest in Gold SIP starting from ₹1,000 per month with BIS hallmarked gold jewellery at maturity. The Golden Tree scheme offers fixed monthly amounts with bonus installments at maturity, while the Golden Locker plan provides flexible saving with 0% making charges at maturity. This approach eliminates the decision of timing gold purchases based on daily price fluctuations, providing a systematic approach to gold accumulation.
Recent market developments show large fund houses stopped accepting fresh money into gold funds of funds from October 16, reportedly following SEBI guidance amid rupee weakness and festive import pressures. However, gold ETFs remain available on exchanges for demat account holders. Financial advisors recommend treating Dhanteras purchases as expenditure rather than investment, while suggesting that real gold holdings should be maintained in highly liquid forms that incur minimal holding costs. The analysis emphasizes that jewellery items like bangles and necklaces do not qualify as liquid gold holdings for investment purposes, making systematic investment plans like Gold SIP the preferred approach for long-term gold accumulation.
