Bars and coins steal the shine from jewelry as Indians splurge up to $11 billion on gold this Diwali

Core Insights - Gold prices remained stable in Asia as investors awaited the U.S. Federal Reserve's policy decision and monitored the Israel-Iran conflict [1] - The demand for gold in India surged during Diwali, with a notable shift towards purchasing gold coins and bars rather than jewelry [2][4] Industry Trends - Over 40 tons of gold were sold in India on the first day of Diwali, indicating strong consumer interest [2] - Total gold sales during the five-day Diwali festival were estimated between 700 billion rupees ($8 billion) and 1 trillion rupees ($11 billion) [3] - The jewelry sector experienced a decline in sales, with a reported 30% drop in jewelry purchases compared to the previous year [4] Investment Sentiment - The increase in gold purchases is driven by a search for returns, with gold prices rising 66% by mid-October and remaining up 55% as of the latest report [5] - Industry experts predict that gold prices could reach $5,000 per ounce by 2026, following a recent peak of over $4,000 [5] Market Position - India ranks as the second-largest gold purchaser globally, following China, with consistent demand driven by cultural practices during festive and wedding seasons [6]