Celebrating Diwali with Gold

There are a few months in India which can match the grandeur of November, thanks primarily to the auspicious occasion of Diwali. Diwali, the festival of lights is a time of joy and celebrations, a time where we open our homes and bank accounts to welcome the goddess of wealth. While there is no doubt that this month sees the brightest streets and homes in India, perhaps this Diwali could see some additional glitter in your home, in the form of gold.

Gold purchases often pick up during this festive season, with people scouring to purchase gold, hoping that this auspicious purchase enhances their wealth and fortune. While there is no bad time to purchase gold, Diwali might be considered an excellent time to purchase it, given the additional offers one can get from jewellers during this period. There are, however, a few things which one might want to keep in mind before they splurge on this glittering metal.

Five Golden Points to Consider Before Buying Gold this Year

  1. Cost of gold and US Federal Reserve Hike – Gold rates across the globe are highly dependent on government policies. The United States is perhaps the biggest name which dictates economic trends globally and gold rates are hinged on the impending US Federal Rate hike. A rate hike by the United States of America is bound to have a ripple effect on gold prices, with prices expect to drop on account of migration to other government securities.
  2. Geopolitical implications – Gold prices are decided, to an extent, by geopolitical events. Changes in a country’s policies could create a storm in international prices, impacting prices in India as well. The recent example of gold prices plunging on account of China’s decision to offload gold in the market shows how strong geopolitical scenarios are when it comes to gold rates.
  3. India’s love for importing gold – There is no doubt that Indians love gold. It is this love for gold which makes India the largest importer of gold in the world. Government import duties and international trends ultimately account for the final price that we, as consumers pay for gold in the country. A change in local government policies could have a huge bearing on gold prices, with new schemes set to change the way gold is treated in our country.
  4. Rupee Vs Dollar – Globally, gold is primarily sold and purchased in US Dollars and any changes in the relationship between the Indian rupee and the US dollar could have a huge implication in the price of gold in India. A fall in the rupee vis-à-vis the dollar could see gold rates climb in the country, primarily due to the fact that India imports a vast quantity of gold to meet local requirements.
  5. Gold as an investment – Gold is one purchase which has found multiple uses in an Indian household. From jewellery to coins and bars, gold offers great liquidity and financial stability to individuals, classifying it as a safe investment option. Gold has managed to beat rising prices and inflation, keeping pace with changing times.

All these factors could play a huge role in determining the value you pay for purchasing gold this Diwali. While there is no saying what the future holds for gold, the present looks sparkling and it could be time for you to add sparkle to your life by purchasing some gold this Diwali.

Read More on Gold

Gold Rate In Metro Cities
Gold Rate In Other Capitals
Gold Rate In Other Major Cities
Gold Rate In States
Bank Gold Schemes

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