The Art of Timing: When To Buy & Sell Diamonds/Gold For Festive Gains?

When it comes to investing in precious metals like gold and diamonds, timing is a discipline that can result in joyous returns. When it comes to investing during the festival season of Dhanteras/Diwali and safeguarding your portfolio against inflation, gold stands out as a highly safe option. Gold has a distinctive place in Indian culture, particularly around the festival of Dhanteras.

Purchasing gold during festivals is a tradition that has been deeply embedded in our society for many years. Conversely, diamonds are more mysterious. Because of their appeal and rarity, which make them a symbol of celebration, savvy investors recognise trends in the gold and diamond markets and take advantage of special occasions to spike their return on investment. Here are certain times when investors might carefully consider buying and selling diamonds or gold for festive gains, based on interviews with various industry experts.

Deepali Vijay Jain, Founder Chairwoman of DiamondXE

In the ever-evolving landscape of the diamond industry, timing becomes an art that can hold the key to unlocking extraordinary value. At DiamondXE, with our expertise and a vast selection of certified diamonds, buyers and sellers can make the most of the market potential.

Of late, we've witnessed a significant shift in certified polished diamond prices, with a remarkable 35% drop near Dussehra as compared to the previous season. The decline in prices, especially in the 0.25 to 3-carat range, has made larger and exquisite diamonds more accessible to consumers.

This market shift is a result of global factors and the growing popularity of lab-grown diamonds. The Indian diamond trade, responsible for cutting and polishing 90% of the world's diamonds, is seeking to divest its inventory in the domestic market at lower prices. This presents an opportunity for buyers to invest in diamonds, with significant festive gains potential.

And the timing couldn't be more auspicious. As rough diamond prices follow suit in their downward trajectory, the Indian domestic market may witness a further decline in polished diamond prices. This favourable market condition not only offers affordability but also potential long-term investment value, as diamonds are known to appreciate over time.

Hardik Mangla, Founder, Jewelry brand Demi Luxe

The art of timing, when to buy and sell diamonds and gold for festive gains, is a delicate dance between knowledge and intuition. Just as a jeweller carefully selects the perfect gem, investors must study the intricate facets of the market.

Gold, a timeless store of value, often shines brightest when economic uncertainty looms, making it a prudent choice during festive seasons. The timing is crucial; one must buy when prices dip, and sentiment wavers.
Diamonds, on the other hand, are more enigmatic. Their value lies in rarity and allure, making them a symbol of celebration. Wise investors identify trends in both the diamond and gold markets, leveraging special occasions like weddings and holidays to maximize their gains.

However, timing isn't solely about market analysis; it's also about understanding cultural and emotional factors. Festive periods drive demand for these precious commodities, and selling during such times can yield higher profits. The true art lies in striking a balance between these economic fundamentals and the emotional resonance of the festivities. Just as a diamond's brilliance captivates, the art of timing captures the spirit of celebration in the world of investment.

Baruni Verma, Founder, Starkle

In the world of investing, timing is an art that can yield festive gains when it comes to precious metals like diamonds and gold. Gold, in particular, stands out as a safe investment choice. While it may not offer rapid returns, its value tends to shine over the long haul, typically post 3 to 10 years of purchase. This extended time frame allows investors to weather short-term fluctuations and benefit from the metal's enduring allure.

In India, gold holds a special place, especially during the auspicious occasion of Dhanteras. This tradition of buying gold during festivals has been ingrained in our culture for generations. It's not just a financial investment; it's a symbol of prosperity, security, and tradition.

The key to success when dealing with gold and diamonds is to be patient. Like a masterful artist, you must wait for the perfect moment to buy or sell. Festive seasons, like Dhanteras, often witness increased demand for gold, making it an opportune time to purchase. When it comes to selling, timing is equally crucial, as market conditions play a pivotal role in determining the value of your precious assets.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.