Akshaya Tritiya 2021: Here's how to invest in gold this season

Given the unfortunate resurgence of COVID-19 in India, Fahoum believes, financial markets can be expected to feel some pressure which can further assist gold prices in the near term.

Chintan Haria, Head of Product Development and Strategy, ICICI Prudential AMC is also positive on gold given its relative valuation with equities and uncertainties being witnessed in the debt market.

Keeping in mind global central banks' policies, he thinks that a spike in inflation is likely and since gold acts as a hedge against inflation, investors can consider around 10 percent allocation to gold in their portfolio.

Fahoum thinks that gold exchange traded fund (ETF) is a good option now.

"Investments can be made as per the investor’s financial comfort as Gold ETF units come in various denominations. Also, Gold ETFs are highly liquid compared to physical gold. It can be held in dematerialized form and can be traded on the exchange as easily as stocks. Physical gold is also accompanied by storage costs and design and making charges in case of gold jewellery; which is not the case with investments in a Gold ETF," he suggests.

Gold ETFs, as Fahoum explains, invest in gold bullion which is as good as investing in physical metal, but is held in electronic form.

An investor may buy as low as one unit and the expenses associated is much lower when compared to physical gold investments.

On the other hand, gold mutual funds could also be explored by people.

For gold MFs, there are asset management firms who purchase gold on investors' behalf through exchange-traded funds (ETFs). The value of these funds is determined by way of Net Asset Value (NAV), which is disclosed at the end of trading hours.