Bullion Holiday Deals: Diwali

 

Diwali Gold

Bullion Exchanges wishes you a happy Diwali! Also spelled Deepavali, Dipavali, or Divali in various parts of the world, English speakers often refer to Diwali as the Festival of Lights. Hindus, Jains, Sikhs, and some Buddhists celebrate it annually on the darkest day of the Hindu calendar month Kartika. This usually winds up being some time between mid-October and early 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 yearly drivers of demand in the worldwide gold industry.

As with Christmas’ many different cultural sources, experts theorize that Diwali began as a fusion between various different harvest festivals in ancient India. This means that many religions and different ethnic groups celebrate Diwali, and that it has different significance to each. However, most Hindu cultures associate the festival with Lakshmi, the goddess of wealth and prosperity. Similarly, millions of Sikhs visit Amritsar’s Golden temple, which is literally plated with gold, to celebrate Diwali every year. No matter the culture, the festival as a whole usually represents the victory of light over darkness, with light serving as a metaphor for knowledge and consciousness. These reasons all come together to make gold a popular Diwali gift for many families.

On the first day of Diwali, called Dhanteras, celebrants often begin their holiday by cleaning their homes and buying gold. Tradition states that buying gold on Dhanteras will bring more wealth to the family in the coming year. Jeweler sales, in turn, increase about 20-30% during this period. To help put that into perspective, more than 800 million participants in India alone celebrate Diwali every year, and over 20,000 metric tons of gold are currently held in Indian homes and temples.

Cultural significance of gold in India

Outside of Diwali, gold has a significant place in Indian culture. According to the World Gold Council, India is the second-biggest consumer of gold in the world behind China, and buys somewhere between 800 and 1000 tons of the precious metal annually. 

This might be because gold holds great religious significance in India. Brahma, the Hindu creator god responsible for shaping the Earth and all things on it, is said to have been born from a golden egg. And according to the ancient lawgiver Manu, normally depicted in Hindu texts as the first human, gold should be worn for all important ceremonies and occasions. This is likely yet another reason why gold is so central to Diwali, along with smaller, regional festivals like the North’s Baisakhi, the East’s Durga Puja, and the South’s Akshaya Tritiya. It might also explain why gold is almost mandatory at Indian weddings.

Weddings are one of the major drivers behind gold purchases in India. As co-founder of Bangalore-based Divya Vithika Wedding Planners Vithika Agarwal 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.”

This means that much of the demand for Indian gold is in the form of jewelry. And according to Somasundaram PR of the World Gold Council, 50% to 60% of that is bridal. Aside from the religious significance of gold, PR also told CNN that Indian wedding gold originates from a tactic for protecting brides back when property laws favored grooms. “Land, buildings, they always went to the son,” he told the outlet. “So when people had to give something to the daughter, they would always share their wealth in the form of gold.” Agarwal added by explaining that Indian families with daughters start investing in gold when they are very young, so that she always has the precious metal to keep her financially secure. Even though laws are more egalitarian now, the tradition persists.

Bullion Exchanges and Indian Gold

Despite gold’s importance to Indian culture, India imports almost all of its gold. Bullion Exchanges wants to do our part this Diwali by offering you gold at the lowest margins available for your gift-giving and celebration needs. PAMP Suisse’s gold bars are among our best sellers for Diwali every year, and we are excited to offer this renowned Swiss mint’s beautiful bars to you again as we enter another holiday season. We currently carry Lady Fortuna goldLunar goldReligious gold, and generic gold designs from PAMP, in sizes ranging from 1 gram to 5 grams10 grams20 grams1 oz5 oz10 oz, and more. As the Roman personification of luck and fortune, the Lady Fortuna series is among our most popular Diwali sellers. It features a beautiful design on the obverse of Fortuna wearing a blindfold and offering a cornucopia.

Let Bullion Exchanges join you in celebrating Diwali this year by buying your gifts from our wide selection of gold, available at the lowest possible margins from spot.