5 Tips To Consider Before Investing In Gold This Diwali

As one of the most auspicious periods in the Hindu calendar, many Indians look to purchase gold during Diwali for its perceived wealth and stability benefits. This blog discusses five essential tips to help you make an informed decision about whether investing in gold is right for you this Diwali.

Let’s Begin

One long-standing tradition associated with Dhanteras is the purchase of gold and silver. As per Hindu beliefs, buying precious metals on this day brings prosperity and wealth throughout the coming year. It is considered highly auspicious, with families purchasing gold jewellery. 

The metal purchases are seen as an investment for the future that will grow in value over time. Even a small amount of gold, however, holds significance. To this day, the buying and gifting gold remains an integral part of Dhanteras festivities and rituals across India.

According to the research report on the World Gold Council, here are some statistics on gold buying in India during Diwali:

• The report cites a household survey conducted by the India Gold Policy Centre-IIM Ahmedabad, which found that 65-70% of respondents cited festivals as their main occasion for buying gold. Diwali and Akshaya Tritiya (another auspicious gold-buying day) accounted for 30-35% of festival-related gold demand.

• On average, around 40-60 tonnes of gold is sold in India during just the festivals of Diwali and Akshaya Tritiya alone each year, according to the report.

5 Tips To Consider Before Investing In Gold This Diwali

As the joyous festival of lights, Diwali approaches, the air is filled with anticipation and excitement. It’s a time for joyous celebrations, family gatherings, and the exchange of heartfelt gifts. Amidst all the festivity, one enduring symbol of prosperity and tradition remains constant: gold. The significance of gold during Diwali goes beyond its monetary value; it symbolises purity, wealth, and blessings. 

As you prepare to make a significant investment, here are the five tips to consider before investing in gold this Diwali:

1. Consider Gold’s Protection Against Inflation

Gold has a reputation as a reliable hedge against inflation due to its intrinsic worth and limited supply. When prices rise due to inflation, the value of paper currencies and other assets can decrease as purchasing power reduces. However, gold typically maintains or increases its value during such periods. This is because gold supply grows at a slower rate than demand, putting upward pressure on prices over the long run. Even when other assets are declining, having gold can help safeguard wealth against the eroding effects of inflation. 

2. Think About Liquidity 

Liquidity refers to the ease of converting an asset into cash without significant loss of value. Gold is highly liquid due to its global market and accessibility through various channels, enabling quick access to funds from gold investments when necessary. In contrast, assets like real estate can take considerable time to sell, making gold a more immediately liquid option. Consequently, gold remains a dependable choice for meeting short-term financial needs without the risk of being locked into the investment.

3. Design Aesthetics

While the investment aspect is crucial, selecting a design that resonates with your personal style and preferences is equally important. Our team of skilled artisans at Vummidi Bangaru Jewellers crafts exquisite jewellery pieces that blend contemporary elegance with traditional motifs, ensuring that every piece you purchase is a reflection of your unique style and taste.

4. Online Presence and Convenience

Embrace the convenience of online shopping with a jewellery brand that offers a seamless digital experience, making your Diwali gold shopping hassle-free and accessible from the comfort of your home. Explore our user-friendly website at Vummidi Bangaru Jewellers, where you can effortlessly browse through our exquisite gold jewellery collection and make informed investment decisions at your convenience.

5. Plan Ahead for Custom Creations

Due to the high demand and time constraints during the festive season, you might face challenges in getting delivered of your customised jewellery pieces before Diwali. With the surge in orders and the intricacies involved in crafting personalised designs, it is crucial to plan ahead and shop early to ensure timely delivery of your customised jewellery pieces.

Summing up

Amidst the radiant festivities and the anticipation of Diwali, the allure of gold shines brighter than ever. As you prepare to immerse yourself in the joyous spirit of the festival, keep in mind the tips and insights provided by us. At Vummidi Bangaru Jewellers, we believe that every piece of jewellery carries not only monetary value but also emotional significance that lasts a lifetime. With our commitment to excellence and authenticity, we invite you to celebrate the spirit of Diwali with timeless elegance and sophistication!

Visit us today to explore our latest collection!

FAQs

What are some popular types of gold jewellery suitable for gifting during Diwali?
Diwali is a time for celebrating and gifting. Opt for gold coins or some of the classic pieces like intricate necklaces, elegant bangles, or traditional earrings, which are popular choices during the festival.

What are the best ways to store gold jewellery to maintain its shine and quality?
Store gold jewellery in separate boxes or pouches to prevent scratches and keep it away from harsh chemicals. Regularly clean your gold jewellery with a mild soap solution with water and a soft brush to maintain its shine.

Why should you buy gold during Diwali, especially on Dhanteras?
Dhanteras, the first day of the Diwali festival, holds immense cultural and religious significance in India. According to tradition, purchasing gold on Dhanteras is believed to bring prosperity and good fortune.