Is The Festive Season A Good Time To Buy Gold?
New Delhi: Indian families have a fetish for gold and it is considered a safe investment. Apart from jewellery, people invest in gold in the form of coins, bars, gold-exchange traded funds, gold funds, sovereign gold bond schemes, etc. Like every year, the yellow metal is expected to be in high demand during the oncoming festival season. In mid-September, gold prices were trading at a two-month low, according to Mint. Normally, this is the time when people buy gold as an investment. So, is this a good time to invest in gold?
According to Colin Shah, founder and MD, Kama Jewelry, “There has been a ‘paradigm shift’ in how buyers perceive the yellow metal. People have largely moved on from purchasing gold for investment purchases to a fashionable statement wearable. With this backdrop, along with rising income levels and increasing purchasing power among the buyer class, we foresee this festive season as one of the best,” Colin Shah, founder and MD of Kama Jewelry told Mint last month.
According to Amit Khare, Associate VP, Ganganagar Commodity Limited (GCL), the yellow metal will be in great demand till November. “In a familiar trend, Indians, during festivals, will go to jewellery stores, driving an anticipated rise in demand. As per the previous five years’ pattern, gold generally makes a bottom from August-September. So, this year, we expect the same,” Khare told the publication.
According to Yashoraj Tyagi, COO and CTO, CASHe, ‘festivities often mean individuals have more disposable income that they prefer to invest in assets like gold, aiming to safeguard their financial stability.’