It has been confirmed. Marriages (24%) are the biggest purchase occasions for gold in India.
Surveys done by research firm TNS for The World Gold Council's report on India's gold market: evolution and innovation discovered that birthdays (15%) and religious festivals (12%) were the next two 'big (gold) purchase occasions' in India.
The other big driver in deciding seasonal gold trends were the monsoons as over 600 million Indians continue to dependent on agriculture. This makes monsoon cycle a decisive factor in deciding the ebbs and flows in rural demand.
"For a large percentage of crops, the harvesting season lasts from September to November. Once rural Indian communities have harvested and sold their crops, a portion of the proceeds are invested in gold, typically jewellery," the India's gold market: evolution and innovation report observed.
Another important role in setting up the inflection points in the annual gold calendar is played by religion. Both Diwali - in October or November - and Akshaya Trithiya - usually late April/early May - drive up demand.
"The combination of the wedding season, harvests (Ugadi/Gudi Padwa (late April/early May) marks end of Rabi crop harvesting and start of sowing of kharif crops; Onam (late August/early September) is Kharif crop harvest festival celebrated in Kerala) and festivals (Makara Sankranthi (January), Akshaya Tritiya, Dassera (October) and Diwali/Dhanteras are the gold buying festivals in India) means that gold jewellery buying tends to be concentrated in April-June and September-January," the experts behind the World Gold Council report observed, highlighting it with the heatmap below:
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