Every year, gold sees high demand on the Indian front as the country turns to celebrate the Festival of Lights known as Diwali. During this time, gold is in high demand because it is an integral part of the holiday. Although some people like to invest for the sake of investing, the connection between gold and Diwali is now a widespread tradition. Specifically, families who identify as Hindu, Jain, Sikh, or Buddhist all celebrate the holiday and buy gold. Actually, you do not need to follow superstition right now to see that gold is a great investment. Because of the political uncertainty in the US as we continue to await the election results, and the rise of inflation, gold might be a great investment.

What Is Diwali?

Diwali, also known as Deepvali, Dipaveli, or Divali, is the five day Festival of Lights. However, it is much more than that. Diwali is also India’s biggest and most crucial holiday of the year. The festivities surrounding Diwali involve clay lamps, decorating with design patterns on the floor, prayer, and buying gold. During the holiday, most buildings are decorated with small oil lamps called diyas, and people often enjoy fireworks and sweets during the festivities. Although many celebrate the holiday, the main idea behind Diwali remains the same across the board: it is a celebration of the triumph of light over darkness before the winter brings the new year.

Many people who participate in Diwali enjoy buying gold on the first day of the festival, Dhanteras. This is a superstition because if they buy gold on this first day, they welcome in blessings for a prosperous new year. This tradition stems from the Hindu belief that the goddess of wealth, Lakshmi, may enter their homes when they buy gold. As a result, she blesses the family to become even wealthier later in the year. This year, Dhanteras falls on November 13, and Diwali begins the following day. Therefore, Diwali and gold are intertwined in this ancient holiday.

Sikhs typically celebrate this holiday because it falls on the day their sixth guru, Hargobind Singh, was released from prison in 1619. While they also celebrated Diwali before this event, Diwali took on a new meaning with this event. But, gold is still especially important to them because their holiest place is the Golden Temple at Amritsar. This temple is literally gilded, and it was on Diwali in 1577 that they laid gold there. As a result, many Sikhs travel here during the holiday. Finally, Jains also partake in Diwali to honor when their founder, Lord Mahavira, reached Moksha. This is also known as eternal bliss or nirvana, and it is the highest level of enlightenment for the human soul. 

The Impact of Diwali on Gold Spot Price

The vast majority of India observes Diwali with about 800 million participants each year. Although many interpret the holiday differently, buying gold remains a staple for each family. No matter the price, it seems families buy gold. Most notably, gold is the second-largest import in India after crude oil. Since India is the second-largest country in the world, Indian gold demand weighs on the larger markets on top of their own. In fact, seeing as India is the second-largest gold consumer after China, this demand definitely impacts the international gold markets.

Demand is so high during Diwali that Diwali makes up 1/5 of annual gold purchases in India! Specifically, jewelers and gold bullion dealers in India commonly report a 20-30% increase in sales leading up to Diwali. Reportedly, many shoppers save up to make big-ticket purchases at this time. However, this might also be because it is still the Indian marriage season. Although India must also account for the pandemic and have to celebrate accordingly, gold buying can be a relatively safe tradition. So, a decline in the gold spot price despite the holiday is unlikely. 

Indian Marriage Season and Gold

Gold is also a major purchase in India beyond Diwali. As a matter of fact, gold and Diwali may be a concentrated annual purchase in November, but gold is incorporated into traditional clothing for all major events and holidays. This practice originates from ancient texts, mandated by the ancient Hindu lawgiver Manu. He is believed to be the first human. Therefore, gold is one of the holiest metals in Hinduism. An additional Hindu belief that strengthens their high respect for gold is that Brahma, the Hindu creator god, was born from a golden egg. This holy association further grounds the use of gold in the marriage season from August through October.

Gold became a prevalent part of Indian marriages because old Indian laws usually favored grooms over brides. So, women often received gold as gifts to help secure them. In the past, only men owned land, buildings, and other forms of property, but women often received jewelry. Consequently, it became a common practice that young Indian girls invested in gold. This way, she always has a store of wealth to help secure her finances. Although the laws are less imbalanced today than they once were, the tradition remains.

Vithika Agarwal, a co-founder of Bangalore-based Divya Vithika Wedding Planners, once told CNN, “It doesn’t matter how rich or poor you are—you will still own gold according to your status. And because this is a day when you’re showing off your prosperity, wealth, and material goods, the amount of gold you’re wearing really matters.”

Bullion Exchanges’ Top Picks for Diwali

Some of the most popular picks for gold and Diwali are from Swiss refineries. The PAMP Suisse Lady Fortuna gold bars, available in fractional and 1 troy oz sizes, are among the most popular picks. This could be because Lady Fortuna is similar to the Hindu Goddess of Wealth. However, gold bars, in general, tend to be the most collected. Some bigger ticket items this year might be Perth Mint Gold Bars and Valcambi Suisse Gold Bars.

Here’s some gold we think is perfect for the holiday:1 oz Gold Bar PAMP Suisse Lady Fortuna Veriscan

1 oz Gold Bar PAMP Suisse Lady Fortuna Veriscan .9999 Fine (In Assay)

 

Bar Features :

  • Produced from 99.99% pure gold with a weight of 1 troy ounce.
  • Eligible for Precious Metals IRAs.
  • Weight and purity backed by PAMP Suisse.
  • Sold by PAMP Suisse in its tamper-evident assay card.
  • Features its unique serial number.
  • Contains the newest Veriscan® anti-counterfeit measure – each bar has a microscopic surface topography that is used as an individual digital fingerprint. This one-of-a-kind “fingerprint” is then registered in the mint’s special bullion catalog. It can be viewed anytime when the bar is scanned to confirm its authenticity.
  • Obverse: Features the famous image of Lady Fortuna. Romans considered her the Goddess of luck and chance and also the protector of grain supplies. She is represented with a blindfold on her eyes – the symbol of life’s unpredictability, as well as sharing her wealthy cornucopia with others.
  • Reverse: Depicts the PAMP Suisse’s logo, followed by the weight and purity of the bar, as well as the engraving “Essayeur Fondeur” (confirming the bar’s authenticity) and the unique serial number.

Also available in 10 grams5 grams2.5 grams, and 1 gram sizes.

 

20 gram Gold Bar Valcambi Suisse .9999 Fine (In Assay)

Bar Specifications:

  • Made from .9999 fine gold with a weight of 20 grams
  • Each bar includes an assayer’s mark and individual serial number
  • Shipped in original, sealed assay card to validate its authenticity
  • Individual bars come carefully packaged. Lots of 25 come in mint-issued boxes.
  • Obverse: Displays the revolving square logo of the mint with inscriptions “20 g”, “fine gold”, “999,9” and the assayer’s signature “CHI” and “ESSAYEUR FONDEUR”.
  • Reverse: Engraved with “VALCAMBI SUISSE”.

Also available in 10 grams5 grams2.5 grams, and 1 gram.

 

100 x 1 gram Gold Valcambi CombiBar .9999 Fine (In Assay)

 

Bar Features:

  • Sheet of 100 – 1 gram Valcambi Gold CombiBars
  • Made from .9999 fine gold with a weight of 1 gram, and a combined weight of 100 grams.
  • Each bar includes an assayer’s mark and individual serial number
  • Shipped in original, sealed assay card to validate its authenticity
  • Obverse: Displays the square logo of the mint with inscriptions “1 g”, “fine gold”, “999,9” and the assayer’s signature “CHI” and “ESSAYEUR FONDEUR” on each CombiBar.
  • Reverse: All the bars assembled together make up a complete image of a 100-gram Valcambi Suisse gold bar. This side includes the Valcambi Suisse logo and unique serial number. Inscriptions: “valcambi suisse”, “100 g”, “fine gold”, “999,9”, and assayer’s signature “CHI” and “ESSAYUER FONDEUR”.

 

1 oz Perth Mint Cast Gold Button Bar Serial Number Limited Edition .9999 Fine

 

Bar Features:

  • Individually serialized gold bars
  • Limited production – Will not be struck again after sold out
  • Made from .9999 pure gold, with a weight of 1 troy oz
  • Produced by the renowned Perth Mint
  • Obverse: Features Perth Mint’s logo of a swan. Inscriptions: “THE PERTH MINT” and “AUSTRALIA”.
  • Reverse: Contains only inscriptions. Inscriptions: “1OZ”, “9999”, “FINE”, and the serial number.

 

20 gram Perth Mint Gold Bar .9999 Fine (In Assay)

 

Bar Features:

  • Made from .9999 pure gold, with a weight of 20 grams
  • Produced by the renowned Perth Mint
  • Individual bar packaged in an assay card
  • Eligible for Precious Metal IRAs
  • Obverse: Features Perth Mint’s logo of a swan along with the bar’s metal weight and purity
  • Reverse: Depicts a repeating pattern of kangaroos

We also have this in 1 gram and 50 gram sizes!

 

See more of our holiday picks on our Diwali page.

Bullion Exchanges

Bullion Exchanges wishes a happy Diwali to all who celebrate as we enter the holiday season this November. In terms of economic activity and gift-giving, Diwali is comparable to Christmas in the Western world. It is also one of the biggest drivers of demand in the gold industry. Gold and Diwali is a constant, therefore you should only buy from a source you trust. Bullion Exchanges is based in the heart of NYC’s Diamond District. We are more than happy to help you with your gold and Diwali needs, so come on down to our shop or peruse our online catalog anytime. We also offer you silver, platinum, palladium, and rhodium products on top of buying your bullion and precious metals products.

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