How do Religious and Festive Events Influence the Demand for Gold Jewellery in India?
India is a land of different religions. It has a rich cultural heritage where festivals are integral to Indians. Religious events and festivals impact the demand for gold significantly. The Indian gold market is among the largest markets worldwide. Some people have also started to use cash for gold investments.
Festive Bling: The Impact of Festivals on the Indian Gold Market
In India, gold’s value goes far beyond investment and jewellery. The religious and festive influence is enormous on the demand for gold in India.
Religious festivals like Diwali, Dhanteras, Dussehra, Akshaya Tritiya, and Navratri add to the demand for gold as they are celebrated with great splendour.
Indians give gold to their loved ones as gifts on Diwali. It symbolises good fortune and prosperity. Typically, during festivals, gold is gifted in the form of jewellery. Not only this, but some people also wear intricate gold embroidered sarees and suits to celebrate the grandeur of Diwali.
Gold is an auspicious gift for brides and grooms in India. Gifting gold to a bride on her wedding day is sacrosanct. It also indicates social standing and status. With the advent of digital gold, Indians have another option to gift or invest in gold for their secure financial future.
Within Indian families, gold is often passed down from generation to generation, and there are numerous antique gold jewellery pieces. Such jewellery is worth more than its current value. Therefore, when you want cash for gold, know its real value. You can also approach reputed gold-buying companies using the latest technologies for a free purity check. They can instantly provide cash for gold up to Rs 10,000 and transfer those funds into your bank account through NEFT/IMPS/RT.
Akshaya Tritiya is celebrated in April every year. Following Hindu Mythology, Indians believe that buying gold on this festival brings prosperity and good luck to their families. Akshaya Tritiya is the day when Goddess Lakshmi was born. People buy gold to please her and invite her blessings.
You must always research gold rates per gram before buying any valuable item of gold to be gifted during festivals and weddings.
Analysing the Impact of Festivities
Demand for gold jewellery, coins and bars increases yearly in October, November and December. These are the months in which several festivals like Diwali and Dhanteras come. Let’s examine how festivities impact the demand for gold.
- Gold prices sharply rose during the financial year 2022-23. It reached around 49.18 metric tonnes from 38.27 in 2021-2022. The demand was driven by wedding season and investor interest.
- While the international gold price dipped by 2% in October 2022, impacted by dollar strength, the local gold market witnessed a premium for most months in 2022. Hence, gold’s performance was relatively healthy in terms of local currency
- The demand for gold goes beyond traditional gold jewellery designs. With changing times, consumers experiment with fusion designs in lightweight gold jewellery. Trendy gold jewellery can be worn daily. The gold rate per gram differs daily for different gold carats.
- The influence of religious celebrations or festivities is widespread on the domestic market in India. An increase in demand for gold in India has a surging impact on the international gold market simply because it is the second-largest gold market worldwide. During the Indian festivities, the demand for gold increases in the international market. It also leads to a rise in gold rates.
Therefore, India is one of the largest gold importers globally, as gold is deeply rooted in its culture and tradition. This demand grows more during the festive seasons. Whether you want cash for gold in Delhi or to buy a new piece of gold jewellery, ensure that you only approach authorised gold dealers. They use the latest technologies and do purity checks to determine the value of your gold items.