As festive Season approaches in India, surge anticipate in gold demand

As festive Season approaches in India, surge anticipate in gold demand image/Mint

Anticipating a Golden Surge: High Demand Expected for the Festive Season

As the calendar flips towards the months of September to December, India gears up for a significant surge in gold demand. This phenomenon is not just about economics; it’s deeply rooted in customs and traditions that have stood the test of time. The festive and wedding seasons during this period historically drive up the demand for the precious yellow metal.

A Time-Honored Tradition

The allure of gold during festive periods remains a steadfast tradition in India. The customs and traditions associated with these celebrations make gold an integral part of the festivities. From September to December, this period is considered highly auspicious, aligning perfectly with the festive and wedding seasons. This auspiciousness drives an insatiable appetite for gold.

Optimism Amid Economic Challenges

Despite economic challenges facing the United States and the relative stagnation in gold prices, there’s a strong sense of optimism regarding the upcoming surge in demand. Experts like Colin Shah, Managing Director of Kama Jewelry, attribute this optimism to the robust performance of stock markets. This optimism is not merely about investment; it’s about the changing perception of gold.

A Fashionable Statement

Gold is no longer solely viewed as an investment; it has transformed into a fashionable statement. Buyers are increasingly shifting from considering gold as a financial asset to a wearable statement of style and affluence. Rising income levels and enhanced purchasing power within the buyer class further fuel this trend.

A Promising Festive Season Ahead

The much-anticipated festival season is just around the corner, and it’s expected to reignite the age-old tradition of visiting jewelry stores. Amit Khare, Associate Vice President at Ganganagar Commodity Limited (GCL), observes that Indians are likely to flock to jewelry stores during this period, creating a substantial uptick in gold demand between September and November.

A Look at Gold Prices

Currently, gold prices are hovering near a two-month low. Amit Khare points out that, based on patterns observed over the past five years, gold typically hits its low point in August-September. This suggests that this year may follow a similar trajectory.

Preserving Financial Stability

Yashoraj Tyagi, Chief Operating Officer and Chief Technology Officer at CASHe, notes that festivities often translate to increased disposable income. Many individuals prefer to invest this extra income in assets like gold, viewing it as a means to safeguard their financial stability.

Festival Lineup

September 2023 boasts a lineup of significant festivals, including Krishna Janmashtami, Hartalika Teej, Ganesh Chaturthi, and Anant Chaturdashi, among others. Furthermore, the conclusion of Navratri marks the commencement of the wedding season, a period when gold jewelry demand reaches its zenith.

As the festive and wedding seasons approach, the sparkle of gold takes center stage once again, embodying the enduring traditions and aspirations of millions in India.