Some relationships are special.
Ties that are rooted in deep cultural affinity and richly interweaved with the glorious Indian tradition of festive celebrations, worship of Divinity and ushering in prosperity.
Bonds that have stood the test of time. True, we are talking about the close relation between gold and Diwali.
A bond that dates back to ancient times and has grown stronger with each passing year. Let’s explore the significance of buying gold during Diwali and how digital gold is a novel way to own gold during the festive season.
The strong gold connection
- Perform Puja at home - check
- Decorate the home and the Mandir - check
- Light earthen Diyas - check
- Burst crackers- check
- Arrange festive lights at home- check
- Draw colourful Rangolis- check
- Consume sweet delicacies-check
- Wear new ethnic clothes- check
- Spend quality time with family and friends-check
- Gift items to friends and family - check
Diwali, the Festival of Lights is joyously celebrated across India in a grand 5-day elaborate festival.
One important thing, though, is missing from the above checklist.
Yes, you guessed right- the time-honoured tradition of buying gold during Diwali.
Diwali begins with Dhanteras and gold plays a decisive role in the entire festive story.
In fact, Diwali celebration would be incomplete without a touch of gold.
So, what’s behind the gold buying tradition? How has this practice taken a new shape in recent years in the form of digital gold? Let’s find out.
Sizing up the gold rush
Since time immemorial, gold has been a valuable asset throughout the course of history.
Ancient records indicate versatile use cases of gold- as a form of art, for ornamental purposes, as a form of currency and wealth to be handed down over generations.
Gold has firmly occupied a pivotal position as a symbol of opulence, power and good fortune for centuries in India, as early as 4000 BC.
There are several references in the sacred Vedic texts to gold as ‘Hiranya’. Further, Indian culture reveres and worships Sri Lakshmi Devi, the Goddess of wealth with gold representing wealth in the material realm.
Hindus pray to Sri Lakshmi Devi for wealth and prosperity. The scarcity, lustre and shine of gold make it a precious metal to be cherished, possessed, gifted and owned.
While some prefer to buy gold for gifting to their near and dear ones for special occasions such as weddings, others consider gold as an ideal investment avenue that generates high returns due to high demand for the yellow metal.
The following are the factors fuelling the investment demand for gold:
Either way, gold serves to preserve, protect and grow wealth.
(G)old habits die hard
As per an estimate by traders’ body Confederation of All India Traders (CAIT), approx. 5 crore items are purchased during Diwali festive period for gifting purposes.
Further, along with other gifting items, the demand for gold picks up pace during Diwali.
It is estimated that during Diwali almost 1/5th of the annual gold purchases in India – higher than any other time of the year, are made. India is already amongst the top 2 nations that lead in gold imports, reflecting the natural attraction for gold amongst Indians.
The Diwali gold craze
As per actual statistics, the gold consumption in India during Diwali and the wedding season between Aug-Dec peak to steep levels, that is not witnessed anywhere else in the world. This is not surprising, given the custom of buying gold during Diwali.
India is among the largest gold consumers and gold importers globally. Our accounted for approx. 30% of global gold imports, estimated at 1067 tons in 2021.
In fact, after crude imports, the import of gold is the 2nd highest commodity in India, as presented in the above chart.
Why do People buy Gold?
Buying gold during Diwali is a harbinger of good luck and has become an inseparable part of the occasion of Diwali and Dhanteras.
As per popular belief, it is considered auspicious to buy gold during this period and yields multiplier wealth benefits in return.
Since gold has traditionally performed well as an asset, Indian households treasure gold and consider it to be one of the best and safest investment avenues.
As per the World Gold Council, the value of gold has registered almost over 10% returns per annum in the past 20 years.
Historically, when the economy, market, stocks etc register a decline, on the contrary, gold has tended to show a jump in prices.
The demand for gold strengthens around Diwali and Dhanteras. While buying gold is a prudent decision, digital gold is a smart mode of investing in gold.
Golden ties that are meant to last forever
Gold is counted amongst the favourite precious metal in the world. The yellow metal acts as a natural hedge against inflation, falling markets and recessionary conditions.
Times have changed though. Every sphere and facet of our daily lives- personal, business, professional or societal has transitioned from physical to a natural preference for digital.
While the tradition of buying gold remains the same, with changing times, the modes of owning gold have changed.
Buying gold is more than just about celebration, it is a robust form of investment. Accordingly, many prudent buyers are preferring to invest in digital gold.
Adopt a Naya Soch towards gold
Digital gold is a convenient, online way of buying gold. The equivalent value of physical gold is stored by the seller in a secure vault on behalf of the investor.
With the advantages of real gold, minus the hassles of physical storage and safekeeping of gold, digital gold does not entail any rent locker charges.
Further, digital gold involves zero making charges and wastage charges as in the case of ornaments.
Also, digital gold can be easily liquidated at any point of time at the live market rates.
This Diwali try something new
Gold is a symbol of purity and affluence, more so the case with 24K gold- the highest grade of gold available.
On the Jar App, investors can buy pure 99.99% purity 24 K gold and sell their holdings remotely, from anywhere.
Owing to its multiple advantages, digital gold is making its way as a must-have investment asset in the investment portfolio.
Besides financial value, gold brings immense social value. Investors can opt for home delivery of gold via the Jar App and use the gold to further make ornaments.
How about exploring digital gold on the Jar App this Diwali? Make the smart move. Invest in Digital gold - the newest Avatar of gold. Think digital gold, Think Jar.