Dhanteras, the first day of Diwali, is a day for
celebrating wealth. Devotees light the first lamps of the festival of lights to
welcome Lakshmi, the goddess of prosperity, into their houses to bless them
with fortune for the year ahead.
Usually falling between mid-October and mid-November,
Diwali is one of the most important dates in the Indian calendar, and as they
celebrate, Indians buy gold. Today, India is one of the largest markets for
gold jewellery, which has a complex and central role in the country’s cultures.
In India, gold jewellery is a store of value, a symbol
of wealth and status and a fundamental part of many rituals. In the country’s
rural population, a deep affinity for gold goes hand in hand with practical
considerations of the portability and security of jewellery as an investment.
This, in part, explains how India’s appetite for gold defies market conditions:
despite a 400 per cent rise in the rupee gold price over the last decade, gold
demand from Indian consumers continues to grow.
Gold is considered to be auspicious, particularly in
Hindu and Jain cultures. The ancient law-giver Manu decreed that gold ornaments
should be worn for important ceremonies and occasions. Across the country,
regional festivals are celebrated with gold: in the south, Akshaya Tritiya,
Pongal, Onam and Ugadi; in the east, Durga Puja; in the west, Gudi Pavda; in
the north, Baisakhi and Karva Chauth.
Gold is central to more personal life events too.
Gifting gold is a deeply ingrained part of marriage rituals in Indian
society—weddings generate approximately 50 per cent of annual gold demand.
Families begin saving soon after the birth of a girl, and the ‘Stridhan’, or
gift of gold to the bride, gives her financial security once she is married.
Over the next decade, there are likely to be 15 million
weddings per year in India, where more than half of the population is under 25.
India’s demographics are driving constant growth in
demand, with over 140 million people coming out of poverty in the last 10 years
in India, but the evolving structure of society is changing tastes too. Since
the early 1990s, urban Indian women have been adopting contemporary designs for
everyday use and wear. Younger, more affluent Indian consumers want pieces that
are modern, yet reflect their heritage and culture; jewellery that expresses
their new identity.