Is there a good time to buy gold bullion? Does gold follow certain seasons? This is a question that a lot of people ask and the answer isn’t always as clear. There are certain seasonal patterns that gold follows but this can vary from country to country. Globally, the demand for gold goes high around the fourth quarter of the year. Since the biggest consumption of gold is in the jewellery industry, the demand wanes in the Northern hemisphere around summer when jewellery producers close for the season. However, demand tends to go up during the fourth quarter of the year as many countries and cultures celebrate different holidays around that period.
In the West, there is a general spike that takes place as a result of people observing or celebrating Christmas. During this time people buy gold jewellery and other ornaments to make the holiday special. If it’s not gold that is bought for decorative purposes but people also buy gold bullion coins and gold bars that can be cherished for a long time and even come in handy in the future.
The Arabic world also celebrates its holidays with gold playing a major role. For instance, people have been known to exchange gifts of gold for Eid ul Fitr which comes after Ramadan as well as Eid Al Adha which is observed 70 days after Eid ul Fitr. Muslim pilgrims also celebrate their pilgrimage to Mecca where they buy gold for themselves and their relatives.
Looking at countries and their gold consumption, Pakistan is one of the top ten gold consumers in the world. Gold is mostly bought during the wedding season. This is because gold is considered as acceptable dowry. During wedding season, the price of gold is usually higher that during other times. Having gold is considered to be handy for brides when they are starting their new lives with their new family.
Turkey is considered to be an important gold destination. Gold is as popular as Turkish delights and because Turkish gold craftsmanship is so unique, a lot of tourists buy Turkish gold jewellery and ornaments to take back to their countries. The Turkish gold jewellery market is more popular in the third and fourth quarter of the year. Jewellery buyers like Turkish jewellery for more than just it’s design but Turkish gold is reasonably priced.
In China, gold is an auspicious metal. A lot of people associate it with wealth and good luck. The sale of gold goes up in China during the Chinese New Year which is celebrated towards the end of January of the beginning of February. The Chinese will display gold and even exchange it with family and friends. Gold also plays a role in the Buddhist religion. As a colour when gold is paired with red it represents the balance between Yung and yang. That is why Buddhist monks wear gold and red robes.
In India the demand for gold goes up more during wedding season which starts in November and ends in May. Demand also goes up during cultural and religious festivals like Diwali. The truth is, in India gold is exchanged frequently because it is believed to bring good luck and wealth. Brides are expected to bring gold jewellery as part of their diaries and families keep their wealth in gold because, it can be exchanged for cash very quickly with no hassle.
It’s good to know about these seasons even when you want to buy gold bullion because it is likely to be more expensive when seasonal demand goes up. When you buy gold, you might want to consider some of these seasons as gold would most likely be more expensive because of the high demand. The price of gold is likely to be low when the demand is low, this might be the best time to buy gold rather than sell.