The festival of lights, Diwali, is celebrated across India with utmost enthusiasm. During this time, Indians purchase valuable items, especially gold, silver or other precious metals.
The beginning of Diwali is marked by Dhanteras, an auspicious day celebrated by purchasing gold coins or jewellery. Diwali is the worship of Goddess Lakshmi, the Goddess of wealth. During this time, people decorate their houses with lights and candles to cast evil away. Another unique aspect is buying gold on Diwali, which is considered a symbol of wealth and abundance.
Purchasing gold in India has emotional and religious quotient attached since is considered to be a divine metal with its ethereal shine and imperishable qualities.
Therefore, there is an auspicious time involved. These timings change every year as per the Hindu calendar, or “Muhurat”. According to Hindu ritualistic practices, the best time to buy gold on Diwali in 2022 is from 6:27 am to 6:03 pm on 23rd October 2022. You can also make a purchase from 6:02 pm on 22nd October to 6:27 am on 23rd October this year.
The festival of Diwali involves the worship of Goddess Lakshmi to celebrate wealth and prosperity. Therefore, you will find many stories and legends connected to gold on Diwali. According to one, King Hima’s 16-year-old son was prophesied to die of a snake's bite only after 4 days of marriage. However, his wife helped him defy the God of Death by blocking the entrance of their chamber with heaps of gold jewellery. This marked the tradition of buying gold on the first day of Diwali, “Dhanteras”, to ensure good fortune.
Goddess Lakshmi, according to Hindu mythology , represents wealth, abundance and good fortune. So naturally, this festival of lights is celebrated in a luxurious style with extravagant gifts, a variety of sweets, and flowers..
Needless to say, gold shops see a great increase in sales, either in the form of coins or jewellery, despite high gold prices on Diwali.
You can claim an income tax exemption on long-term capital gains by selling gold assets under IT Act 1961, Section 54F to save your taxes.
If your gold purchase is over Rs. 10 Lakhs, then KYC is mandatory as per Financial Action Task Force Task Force.
For unmarried women, the relaxation for tax-free gold is 250 gms, while for a married woman, it is 500gms.
Before you purchase gold, you must consider these 5 factors:
Purity of gold
Cost of gold
Taxes
Credibility of the jewellers or banks.
Ease of sale.
Some of the safest options to buy gold are:
Gold Exchange-Traded Funds or ETFs.
Monthly gold investment scheme.
Gold Funds & Equity Based Gold Funds
Digital gold purchase
Gold Futures.