Does it really make a difference in gold price?
Does someone suggest it does? I thought that the Diwali effect was just for stocks and I thought (with no evidence at all) that it was a tax/window dressing effect. Seems like it shouoldn’t affect gold.
The biggest festival of india- Diwali, where the demand for jewellery rises and also the tradition to buy gold is considered very auspicious. Therefore the prices of gold may go high, just a seasonal effect. Cheers Sumo
And Diwali is also close to the wedding season in India, which put pressure on demand for Gold !
sumo Wrote: ------------------------------------------------------- > The biggest festival of india- Diwali, where the > demand for jewellery rises and also the tradition > to buy gold is considered very auspicious. > Therefore the prices of gold may go high, just a > seasonal effect. > > Cheers > Sumo second that
OK - I didn’t know that. Thanks.
The gold prices shoot up two days before Diwali on “Dhan-teras”- this day signifies the start of Diwali celebrations and it is considered auspicious for investment in any precious metals. Dhan means Wealth in Hindi. On diwali, the stock exchanges open for an hour in the evening for “Mahurat trading”, retail investors make a small investment as a token investment on this day. The market usually closes slightly higher than the prev. close on this day. I dont think it affects taxes as much, as the fiscal period for taxation is Apr-Mar