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Gold Price Reacts as Diwali Approaches

Tuesday, October 30, 2018

Diwali is a popular time of year for buying gold bullion because it has a very important link to the Hindu religion. But investors can also make a pretty penny by choosing to buy gold bullion at this time of year, as the gold price reaches one of its peaks due to the sheer numbers of interested buyers in this valuable commodity.

Find out more about how the Hindu festival of Diwali affects the gold bullion market below.

What is the Hindu festival of Diwali?

The Hindu festival of Diwali is celebrated on the 7th November in 2018 and is also known as the festival of light. The importance of gold comes into play because of the story behind the Hindu festival. According to legend, the King of Hima’s son was supposed to have been killed by a snake bite on the 4th day of his marriage but he miraculously survived, thanks to his quick-thinking wife.

The king’s son survived his date with destiny due to his wife collecting the family gold and placing it outside his door. When the snake came along, it became so confused and blinded by the light reflecting off of the gold, that it got disoriented and went away – thus saving the life of the son of the king.

In remembrance of King Hima’s son being delivered from the evil of the snake bite, many Hindu families give each other gifts of gold jewellery and gold bullion at Diwali, to symbolise hope, luck and wealth for the coming year.     

When should you invest in gold at Diwali?

Although it’s traditional to give gold jewellery as a gift at Diwali, in recent years, many people are also giving more investment-based gold bullion products, such as gold coins and gold bars, because it is considered a safe place to invest capital, due to the comparatively steady pace of the gold price, compared to the stronger fluctuations that tend to affect the stock market.

The steady gold price, which often reaches a peak during Diwali due to the sheer demand for the precious metal, can help investors improve their financial security thanks to the fact that gold tends to offer a hedge against the stock markets.

How has Diwali affected the gold market in 2018?

India is one of the largest markets in the world for gold bullion. However, this year has seen an unprecedented increase in gold prices in the run-up to the festival of Diwali. As more and more people in India seek to place their money in gold bullion investments in part due to the annual timing of Diwali, and also because the rupee has devalued to the tune of over 15 per cent this year, gold bullion prices are seeing a lot of activity.

Whether you’re buying gold as an investor or looking for the perfect gift for friends and family, Diwali is a wonderful time to explore the range of gold bullion products on the market.

Take a look at our gold coins here for an unusual gift with a range of options that should allow you to find symbolism and interest to grab the attention of the recipient for good.