The The Diwali Festival is considered the largest annual gold-buying event in the world.
Today, October 23, marks the third day of the five-day Diwali Festival of Lights in many Hindu and Jain cultures. The festival began on Tuesday with the day known as Dhanteras. This holiday is considered the most auspicious time to make investments, spend money on gifts, and especially buy gold. In general, it is a day of levity, joy, and gratitude, specifically focused on celebrating prosperity and well being. Naturally, the purchase of precious metals as a tangible investment is a popular way of observing Dhanteras. (Dhan means “wealth” in Hindi.)
Today, the third day of the festival, is the observation of Diwali itself (although the entire festival is often referred to as “Diwali.”) Each year, the festival of lights–with the attendant candles and fireworks–marks the high point of consumer spending in India. For this reason, it can be seen as somewhat analogous to Christmas for Christians. Gold and silver, however, are inextricably tied to the holiday. This year alone, it is estimated that India’s gold demand has spiked 450% during the festival. This effect was compounded by the recent dip in gold and silver prices, which makes these purchases even more affordable for families taking part in the festivities.
Diwali is recognized as an official holiday in a wide variety of countries around the world, including India, Nepal, Sri Lanka, Myanmar, Mauritius, Guyana, Trinidad and Tobago, Suriname, Malaysia, Singapore, and Fiji. There are also widespread celebrations of Diwali by Hindi communities in the Caribbean, Australia, New Zealand, the United Kingdom, and the United States.
Whether your bullion purchases are for holiday gifts or private investment, you can always track your precious metal investments with Gainesville Coins’ helpful Portfolio Tracker and Financial News page!
by Everett Millman