Buying more, wearing less - why India's Diwali gold rush is different
Summary
In India, many people are buying gold as an investment during the Diwali festival season, even as gold prices rise. While some are purchasing less gold jewelry due to higher costs, there is an increasing trend toward buying gold and silver bars and coins for their investment value. The overall demand for gold is influenced by factors like retail interest and the Indian central bank's activities.Key Facts
- Gold prices have increased significantly, reaching over $1,440 for 10 grams.
- Indian buyers are more interested in buying gold and silver for investment rather than just for wearing as jewelry.
- During Diwali and Dhanteras, many believe buying gold brings wealth and luck.
- Jewellers are selling lighter gold jewelry and smaller gold coins to keep prices affordable.
- The World Gold Council noted a shift, with investment demand rising to 35% from 19% over the past year.
- India's central bank has increased its gold reserves, raising the metal's share in reserves from 9% to 14% by 2025.
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