Is the demand for gold seasonal and does it follow a pattern?

This is a frequently asked question. There is no doubt that the demand for gold is seasonal all over the world. There are different seasonal patterns to look for gold jewelry. The pattern varies from country to country. Global demand for gold is usually highest in the fourth quarter of the year. Demand for gold is generally weakest in the Northern Hemisphere summer, when European jewelry manufacturers are mostly closed. Demand rises in the fourth quarter of the year, as different nations celebrate various festivals and events at that time.

In the Western world, especially at Christmas time, people buy more gold. So Christmas is the season for buying gold in the West. Before Christmas, people give gold gifts to their loved ones and brighten up their Christmas.

As far as the Islamic world is concerned, Eid al-Fitr (the end of Ramadan) is the most important gold-giving event. Eid al-Adha is another special event for Muslims. It is held seventy days after Eid al-Fitr. Eid al-Adha is also an important time of gifting gold to friends and family. Pilgrims who go to Mecca and Medina for Hajj and Umrah also buy gold for themselves and their relatives.

Pakistan is among the top ten consumers of gold. In Pakistan people mostly buy gold at the time of wedding. In every wedding in Pakistan, gold is considered as the basic dowry item. The price of gold during the wedding season is usually high.

In Turkey, demand is highest due to tourist purchases in the third quarter of the year. It should be noted that the seasonal pattern does not affect the price of gold. It is widely known in the gold markets and is therefore reasonably priced. Apart from demand, there are many other factors that affect the price of gold in Turkey.

In China and East Asia, gold is generally bought around the time of Chinese New Year, which is actually the last part of January or the first half of February. During celebrations, the Chinese display gold prominently, as it signifies good fortune.

In India, gold purchases increase during the wedding season and during festivals that vary from region to region. India’s biggest festival is Diwali. From region to region, the wedding season varies, but is generally from November to May. The two-week period of Shraddha during August is disappointing for the ceremonies associated with the purchase of gold. Adik Mas follows this, which is also not the time to buy gold. (Exact dates vary, as the Hindu calendar is lunar.)

You can find a visible increase in the months of January and September, as this is when Indian manufacturers usually stock up to meet the demands of two Indian wedding seasons. Diwali festival starts in the month of November and ends in December. The second starts at the end of March and lasts until the beginning of May. Even the price of gold increases with the increase in the value of dollar, people still buy gold especially during celebrations and now buying gold is turning into a necessity.