The gold price in India has been dropping gradually since the country is embracing its annual Diwali festival. Indians buy more gold as Diwali coming.
With the high demand for gold in India, dealers have been offering discounts up to USD 8 per ounce. The discount enables the price at the lowest price since mid-June.
“Demand has been improving slowly due to Diwali, but still, jewelers are on the sidelines,” said Ashok Jain, proprietor of gold wholesaler Chenaji Narsinghji.
In embracing Diwali, jewelers commonly establish inventories for the transactions that mostly skyrocket. However, this year’s preparation is dissimilar to the prequels.
Reportedly, the fundamental reason was due to the fear of poor sales like in the Dussehra festival. Accordingly, gold sales in the earlier Dussehra festival were very poor that it scares jewelers to stock more.
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Gold and Diwali Festival
Diwali is the festival of lights, symbolizing the spiritual victory of light over darkness, good over evil and knowledge over ignorance. People from various religions such as Hindus, Jains, Sikhs, and some Buddhists celebrate the festival.
Long story short, the Diwali festival occurs in India a thousand years ago. People believe that Diwali is the day when Lord Rama returned from his exile together with his brother, Lakshman, and wife, Sita, after defeating Ravana in Lanka.
The festival annually begins between October and November, but the date changes every year. The change of the date follows the Hindu calendar Tithi, a lunar calendar.
In Diwali, people mark the day as a new beginning and some people also relate the festival to harvest and new year celebrations. Street parties, culinary festivals, and cultural performance color the celebration.
Regarding the festival, gold has become a salient, intrinsic part of it. Besides being a characteristic signature of the people, gold is also a considerably valuable gift, particularly in festivals and weddings. That said, gold and Diwali festival has become unseparated elements.