Buying more, wearing less - why India's Diwali gold rush is different

Diwali, the Hindu festival of lights, is traditionally a time when Indians indulge in gold purchases. However, this year, the gold rush has taken a different turn. Despite soaring gold prices, Indians continue to buy the precious metal, albeit in different ways. While traditional jewelry purchases have declined, Indians are opting for smaller gold items, such as coins and bars, to satisfy their Diwali gold-buying tradition. This shift in consumer behavior is driven by several factors, including the desire to maintain cultural practices, the perception of gold as a safe investment, and the rising cost of living. Additionally, the availability of more affordable gold options has enabled lower-income households to participate in the Diwali gold-buying tradition. Overall, the Diwali gold rush in India this year reflects the enduring significance of the metal in the country's cultural and economic landscape, despite the challenges posed by rising prices.