The gods must be gold bugs...
In India, it's considered auspicious to buy gold during the holiday of Diwali. Diwali is the Festival of Lights shared by members of the Buddhist, Hindu, Jain, and Sikh faiths, where the religious celebrate the triumph of good over evil.
Local sources say around 40% of India's annual gold sales come during Diwali.
In 2008, celebrants who bought gold during Diwali—at the end of October—did so at the perfect time, when gold prices neared $700 per ounce.
It's an international story of faith and fortune that you won't hear much about in the western media, but you need to know the cultural role gold plays around the world if you want to position yourself for optimal gains.
2007 was a different story for Diwali gold. Real estate and the Bombay Stock Exchange both looked like better places for Indians to invest, even though the age-old Diwali tradition stayed the same.
Instead of buying, people sold gold jewelry across India into that year's gold rally above the $800 mark.
A Global Energy Monopoly
Thanks to the unprecedented discovery of a new metal oxide... one company is about to create a global energy monopoly.
Their nuclear fuel additive alleviates safety concerns, reduces radioactive half-life, and saves billions in operating costs.
But, more importantly, it could triple shareholder value in the next 6 months...
All the details are available in this new nuclear energy report.
Fast-forward to the same time in 2008, and the picture was starkly different.
A Very Different Diwali
The World Gold Council's February 2009 Gold Demand Trends report showed a "spectacular" 107% increase in Indian gold jewelry demand in the fourth quarter of 2008, compared to the same period in 2007.
Piety may have been the main motivator... or it could have been profit.
The WGC correlates the Diwali '08 demand spike to shrewd investment strategies and well-timed buying on dips throughout the early year's gold price weakness.
Investment-related gold purchases in India surged just above the $700 per ounce mark, which coincided with the holiday. There was also an increase in demand in mid-September, when gold sat at $750. Both turned out to be great buying points as we've since rallied to inches from the $1000 mark.
The World Gold Council and India's national mail system India Post also stimulated gold demand with a new product... a new gold coin series in India's post offices sold like hotcakes. In a bit over two weeks, 8,500 coins were sold.
Indians have benefited from the country's leading emerging market status. Along with Brazil, China, and Russia, India has been part of the BRIC club of top emerging markets. The immense expansion of wealth since the year 2000 has lifted millions out of poverty and elevated the investment profile and attractiveness of the Bombay Stock Exchange.
But Indians have had much more time to digest the bad news that was only starting to work its way into market pricing when Diwali came around in 2007.
Gold buying during Diwali '08 may have been more of an insurance policy against currency volatility and weakening international trade than a holy duty.
Wherever you are, fortune is sure to smile on gold buyers as long as international uncertainty holds sway.
Regards,
Sam Hopkins
International Editor
P.S. Throughout human history gold has offered safety amid crisis. Fortunately for us there's a new money-making phenomenon that can actually double your gains in gold. Thanks to this unique tool, every time gold gains just 1%, you make 2%... a 25% gain pays 50%... a 100% gain pays 200%... a 500% gain pays 1,000%! Click here to learn more.
Subscribe to