Around the globe, gold is sought after as a fruitful investment as its value is ever-growing. However, in India, gold is not just a good investment. It plays a much more significant role in our culture and society. Gold has its significance rooted deep in Indian history, religion and mythology. Gold plays a pivotal role in occasions and festivals. But it's worthy to note that Indians are seen buying gold throughout the year even without any occasion. India is the largest importer of gold in the world as it has become a part of the home, the family and every occasion.
Why is gold important in India?
Religion - Gold is seen prominently in religious festivals and ceremonies across all religions. It's considered auspicious and blesses the occasion.
Gifts - Gifting gold is always accepted as a blessing and good luck. Gold is gifted in abundance during weddings, housewarmings, and other occasions. Gold is also gifted on birthdays and smaller events.
Occasions - Gold plays an integral part of family functions, occasions and events that people wish to be filled with success, prosperity and good luck. Gold jewellery traditionally play an important part in weddings to mark a long and healthy relationship.
Home - Many Indians prefer to buy gold and store it at home rather than keep money in the bank. The gold then becomes a family heirloom and is passed on through the generations. Gold ornaments earn a sentimental value in the family.
Status - Gold gives individuals a status in society which is why even the lower classes somehow manage to buy gold jewellery to flaunt it. The glittering metal somehow attracts a sense of worth, value and respect from others.
Fashion - Many women of all ages love jewellery, and gold is one that never goes out of fashion.
Superstitions - Gold is seen as a problem solver in a number of issues that might arise. Gold is considered to be a super-metal that can bring on better luck.
Investment - At the end of the day, whether gold is auspicious or not, its value serves as a profitable investment. Through the years, investment in gold has picked up. Gold offerings to temples have reduced as the gold rates have risen drastically making it more valuable as an investment.
There are a number of occasions that are considered to be an ideal time to purchase gold in India. Some of the festivals include Makar Sankranti, Diwali, Dussehra, Onam, Pongal and Navratri. Listed below are the important festivals in the months of August to December 2016.
In celebration of the Goddess Durga, this festival lasts for nine days. The pomp and show will go on between 1st and 9th October, 2016, and will end with Dussehra. During this time, people are usually seen flocking to buy gold, jewellery and ornaments as it is considered auspicious.
Dussehra is celebrated on 11th October, 2016. It is a festival to mark the victory of Goddess Durga and Lord Rama over Ravana and Mahishasur. This is the time of the year, the demand for gold goes up in India.
For Hindus, Dhanteras is an important occasion that is celebrated across the country wherein a large amount of gold and silver in the form of jewellery, ornaments and coins are bought. People also invest in land, property and other endeavours as it is a very auspicious festival. Purchasing gold on this day is believed to keep away evil and death. Dhanteras falls on 28th October, 2016.
Right after Dhanteras, another occasion calls for gifts, Balipratipada. This year Balipratipada falls on 31st October, during Diwali. Gold comprises of majority of the gifts given on this occasion.
There are auspicious times during Diwali to buy gold. The time to buy gold has been listed below according to the local time of New Delhi.
During these festivals, people tend to buy specific items that are considered to be auspicious. The main item that is always in demand is gold jewellery. Diwali is known to be a festival that includes a lot of shopping, and many stores prepare for the rush and also have sales, discounts and offers. During Diwali, people also purchase gold coins. For this festival, jewellers mould specially made coins embossed with the Goddess Lakshmi in front and her symbol "Shri" at the back of the coin. Coins are also available with Lord Ganesha embossed and Goddess Saraswati embossed. The purchases during Dhanteras include silver coins, bowls, tumblers, spoons, and Kalash. Goddess Lakshmi and Lord Ganesha statues made in silver are also in demand during this time. Diwali shopping not only includes gold, but also includes clothes, household items, electronic items and so on.
Gold prices are on the rise as the global economic crisis continues. The demand for gold and silver has shot up as investors move closer towards it as a safe haven. The Brexit vote sent the market into a tizzy but the Bank of England has helped counter the fall with an interest rate cut and fresh monetary stimulus.
With the festive season approaching, the appetite for gold is predicted to increase. Though the first half of 2016 was quite dismal, the second half looks brighter. At the beginning of the year, the government announced excise duties on gold which greatly impacted jewellers. This was followed by the jeweller's strike which lasted a long time. This sent the market into a deep discount zone which ultimately took a toll on the official gold supply.
Statistically, in 2015, gold fell by about 10%. It then rallied 16% in the first three months of 2016. Gold then fell dramatically and touched all time low rates that hadn't been seen in years. The global climate took a drastic toll on the yellow metal. As we move into the second half of the year, prices have picked up with a more positive climate in the global market. Furthermore, the festive season means people buy gold regardless of its price which brings in steady demand in the domestic spot market. We can expect high and stable rates for gold in the months to come.
Many occasions, festivals, events and small functions are not complete without gold bought or gifted to bring in long-lasting success, prosperity, happiness and good luck. The value of gold in India surpasses its intrinsic value.