Dhanteras will fall on 17th October, 2017 and is a day that will spell windfalls for jewellers and customers alike. The auspicious day marks the start of Diwali, the festival of lights and is marked by purchases of gold.
Auspicious Timings To Buy Gold On Dhanteras
While most people set out to buy gold throughout the day on Dhanteras, there are certain times, known as ‘mahurat’, during which the purchase is said to be more auspicious.
Why is Dhanteras auspicious for buying gold?
Dhanteras is the day that marks the beginning of Diwali, when Lord Kuber and Goddess Lakshmi are worshipped. Dhanteras means wealth and prosperity and therefore, this day is considered auspicious for buying gold, silver, or utensils. This day holds high importance among businessmen who invest in gold without fail on this occasion. Dhanteras has always been an important day for purchase of gold and silver in India. Jewellers see a rise in demand for this yellow metal every year as Indians flock to buy gold in the form of either jewellery or coins on this auspicious occasion. Some gold shops open early in the morning and remain open till midnight to manage the crowd.
According to an adage, the newly-wed wife of the 16-year old King Hima drove away the God of Death, Yama, by dazzling him with heaps of gold and silver. The king’s wife saved his life by blocking the sleeping chamber with the heap of wealth. Since then, buying gold, or silver on this day was considered auspicious as it is believed to keep evil and death away.
On Dhanteras, people all around the country not only invest in gold, but also in silver, along with other forms of wealth, such as property, vehicles, or any other asset.
Gold prices now
Gold began the year quite volatile due to a number of factors, most prominent among them the election of Donald Trump to the U.S. presidency. Prices were high initially due to market turbulence and this trend continued for a while.
Gold was relegated to the background in April 2017 as the French elections were underway, with the victory of Emmanuel Macron helping prop up flagging markets and stabilising currency markets across the world.
The frequent threat of missile tests by North Korea impacted gold prices, increasing demand for the commodity. This, coupled with the hurricanes ravaging the continental U.S. and surrounding areas led to higher demand for the yellow metal due to plunging markets and diminishing investor confidence in equities. October also saw stable demand for gold as the festive season ensures higher orders from local jewellers as well as industrial units.
Also check Today's Gold Rate in the most popular Indian cities
What consumers are looking at?
The upwardly mobile youth of the country are slowly shifting the gears of the economy. Most of the young women are preferring to buy gold in smaller quantities such as 1, 2, 5 or 10 grams. Lightweight jewellery is trumping over the more ornate heavier pieces. Other popular products include idols, coins, plated ornaments and similar items.
Gold Price During Dhanteras 2017
With steady demand and the continued unrest due to the threat of an attack by North Korea, gold prices look set to remain high. Higher international demand due to geopolitical crises in the United States has already seen gold rise by close to double its price compared to 2016. This looks set to continue and may well define the rest of the year with regard to price fluctuations.
The unwillingness of the U.S. Federal Reserve to raise interest rates is another factor that would keep gold prices higher. With the dollar performing quite poorly, many expected a rate hike in the near future. However, the Fed is looking at tightening spending and reining in inflation, which would lead to a slowdown among markets and spur demand for safe-haven assets like gold.
The imposition of GST on gold and the recent ban on imports from countries like South Korea will also result in gold prices rising. Since GST was imposed in July 2017, domestic gold demand fell marginally. However there was a sharp increase in imports from South Korea and other countries that India has trade agreements with, which affected the trade deficit. As a result, India blocked imports from those nations, which racked up the price of gold currently in the market.
Also Know About the other Gold Schemes by Banks
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Also Know About Gold Schemes by Jewellers
Buy Gold During Diwali
Buying gold during Diwali is not just a tradition but also a wise investment. With jewellers expecting a large number of footfalls, there are a number of special offers and discounts during the season. Discounts on making charges, freebies as well as exchange offers specially meant for the festive season are a good way for consumers to save when buying gold.
With gold’s status as a secure and ever-rising alternative to equities, purchasing the yellow metal during Diwali is an ideal way to mix tradition with sound financial acumen.
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