Investing during the festival of lights is growing in popularity as an alternative to traditional gifting . This week is the festival of Diwali, an annual, five-day celebration held by millions of Hindus, Jains, Sikhs and some Buddhists in India and across the world. It is known as the festival of lights, symbolising the power of light to overcome darkness, good triumphing over evil and knowledge over ignorance. Diwali is an official public holiday in many parts of India.
Each community has its own legends, stories and unique way of celebrating Diwali. This vibrant festival can be marked by the lighting of lamps and the decorating of homes with colour. Taking place in October or November, depending on the cycle of the moon each year, Diwali follows the Hindu lunar calendar. The highlight of the celebrations, the Lakshmi Puja, takes place on the third night, which is the darkest night of the lunar month.
For Hindus, the festival honours Lakshmi, the goddess of wealth, prosperity and fortune, and Ganesha, the lord of new beginnings and the remover of obstacles. Exchanging gold and gifts is an important part of Diwali as a way of expressing love, gratitude and giving thanks to the deities; purchasing gold during Dhanteras, which marks the beginning of Diwali, is considered to be especially auspicious. The gifting of jewellery also takes place during Diwali, and trends associated with the festival highlight the strong emergence of platinum as an increasingly popular jewellery category in India in recent years.
What is more, investment in precious metals – traditionally gold, but with platinum also an option due to its strong fundamentals and wide discount relative to gold – is becoming a recognised alternative to traditional gifting during Diwali.
In fact, to reflect this growing interest in precious metals investment as a new way of honouring established gifting traditions, India’s Bombay Stock Exchange and National Stock Exchange are open for business on the day of Lakshmi Puja, despite the public holiday, with both offering a special one-hour trading session known as ‘Muhurat Trading’. Muhurat is a Hindu term that signifies an opportune window of time, and this special session attracts large trading volumes.
Investment case for platinum
The platinum price remains historically undervalued and significantly below the price of gold. Research from the World Platinum Investment Council indicates that, since 2023, the platinum market has entered a period of consecutive supply deficits. Platinum supply remains challenged, both from primary mining and secondary recycling, while demand is growing. Platinum is a critical mineral in the global energy transition underpinning a key role in the hydrogen economy.
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