Indians are particularly fond of gold as an investment and as wearable jewelry. As the festival season progresses, it is inevitable that Indians will buy gold, and retailers are expecting a surge in demand. Moreover, the price of gold is currently attractive, having hit a two-month low in mid-September.

Expert”s Take

Colin Shah, Founder and MD of Kama Jewlery, is noticing a change in buyers” perspectives, as they are increasingly opting for gold as a fashionable statement wearable rather than an investment. In the wake of elevated income and purchasing power, Shah predicts that this festival season will be the best ever.

According to Amit Khare, Associate VP of Ganganagar Commodity Limited (GCL), the demand for gold will extend till November. Khare emphasizes that there is a familiar trend among Indians to visit jewelry stores during festivals, which is expected to drive up demand.

Based on the pattern observed over the past five years, gold prices generally reach their lowest point between August and September. Therefore, it is anticipated that this year will follow the same trend.

Investments in gold can be made through jewelry, coins, gold-exchange traded funds, and the sovereign gold bond scheme. The global market price is the single most important factor that affects domestic gold prices.