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Buying Gold this Diwali 2023? Everything you need to know

April 21, 2023

Table of Contents

    Table of Contents

      Want to buy gold for Diwali but don't know how to start your saving journey? Here are the best ways to start your saving journey towards gold investments.

      Diwali is commonly asscociated with buying gold, lights, rangoli and amazing sweets. This auspicious hindu festival is celebrated around the world. It has its history associated with the epic tales of the Ramayana.

      It is believed that when Lord Rama returned to Ayodhya from exile, his people lightened up the kingdom with clay lamps.

      They wanted to eliminate darkness and illuminate the night to welcome their beloved king. Since then, it has been embedded deep into our culture. 

      We celebrate Diwali after Ram Navami during the new moon night every year.

      It is the occasion where people rejoice in the victory of good over evil and light over darkness. It is marked by lighting diyas or clay lamps, celebrations, eating sweets, etc. 

      Importance of gold for celebrating Diwali

      You all have heard about Dhanteras. Segregating this word, "Dhan" means wealth, and "teras" means the 13th day of the Hindu lunar calendar.

      It is celebrated on the first day of the five-day cycle of Diwali. It is believed that goddess Lakshmi comes to Earth during Diwali and bestows her blessings on everyone.

      In devotion to the goddess of wealth and prosperity, people buy gold for themselves and sometimes even use it as gifts on Dhanteras.

      As Diwali 2022 is knocking at the door, it's time to start the preparations, and the first step is to get the best gifts for your loved ones.

      While chocolates, sweets, dresses, and other items are commonly chosen for gifts, gold tops everything. It is usually bought as a sign of its purity and wealth. 

      But with the soaring price of this precious yellow metal, many cannot afford to buy it, even if it is a small gold coin, let alone decent jewelry.

      So, it's time you buckle up and start investing money to have enough funds to buy gold for this upcoming auspicious season that brings prosperity, happiness, and brightness to everyone's life.

      Things to keep in mind while investing in gold during Diwali

      Over the past decade, gold prices have increased at an unprecedented rate. Since the Covid-19 pandemic, the rates have soared high enough, making it a costly gift and investment for most of us.

      Today, one gram of gold costs over INR45,000. Since the tradition calls for buying gold on Dhanteras; as a result, you can't buy gold either before Diwali or settle for steel or silver as alternatives.

      This dampens the happiness of rejoicing the true essence of Dhanteras and Diwali with loved ones.

      This is why investing is important. While it can help you save enough funds to buy decent gold jewelry or any other item during Dhanteras, your investments can plummet down to the ground if planned wrong.

      Therefore, you should know how to grow your gold investments smartly. Before you invest, ensure you check this guide.


      Most jewelry ornaments have rated purity between 18 carats to 22 carats. Many people don't understand the concept of gold purity and therefore end up investing in impure gold.

      Although the purest form of gold is 24 carats, it is the softest. Since it is not combined with other metals, 24 carats of gold cannot hold its shape. Copper or cadmium is added to harden the pure gold and make ornaments. 

      The higher the percentage of gold, the purer the ornament. For instance, if you choose 22-carat gold, the rest of the 2 carats is copper or cadmium. Similarly, in 18-carat gold, 6-carat is another metal. Hence, try to invest in the gold of the highest carat, except 24. 

      Gold rate

      Another crucial thing you need to consider is the gold rates, which are increasing at a galloping pace. Since the price varies daily, you should study the market for a couple of weeks and see how the price movements happen. Based on that, you can decide how much you are willing to invest.

      Ease of sale

      Gold ornaments are considered an investment. Hence, people consider selling them as a last resort during an emergency.

      Usually, jewelers deduct about 15% from the original price as the selling price. In addition, sometimes, jewelers consider the actual rate of when the gold was bought.

      Apart from that, be prepared to receive additional deductions such as polishing and wastage costs. Therefore, you hardly get benefitted. 

      So, why not consider other forms of gold to invest in that can guarantee great returns and profit?

      Alternative ways to invest in gold


      Sovereign gold bond

      Sovereign gold bonds are securities under the government hold. They are defined in grams of metal and work as an alternative to physical gold. Once the bonds mature, you can redeem the money in cash. 

      Gold ETFs

      Through gold ETF, you can easily invest in gold and initiate a better saving journey since here, you can invest money based on the current price movement of the metal. 

      Gold mutual fund

      In gold mutual funds, investments are made on the stock price of the metal, physical gold, and gold mining companies. Therefore, you can earn great returns if the mutual fund is chosen correctly.

      Digital gold

      One of the major questions arising now is what is digital gold. It behaves like digital currency, where you invest in the entity without physically possessing the metal. Also, you won't have any locker to main, and therefore, no extra charges. 

      Use the Jar app to save and invest in gold

      Jar is India's first and only app that allows you to save and auto-invest in digital gold every time you spend money online. Nothing comes as close as the Jar app if you are aiming for daily savings for investing in gold.

      Think of it as your digital piggy bank, where you can d posit as low as INR10/day and as high as INR5,000/month. You can increase the deposit based on your convenience. 

      The Jar app is NPCI-authorized and has helped over 8 million Indians save money and invest it in digital gold daily. It has partnered with Safegold to invest in 24-carat 99 99% pure digital gold.

      Hence, you can rest assured that your money is safe and working on its own intensely to offer you great returns. 

      Why invest in digital gold?

      Digital gold is a virtual investment asset, much more flexible and hassle-free than physical gold. Since it is purchased in its digital form, you do not need to worry about keeping it safe in bank vaults as a buyer. 

      Hence not only do you save money from paying vault charges, but it also works as a hedge against inflation.

      It offers easy liquidity and a great return on investment to investors. So, rest assured, if you plan to sell it to buy physical gold jewelry during Diwali, you will get good returns. 

      Benefits of using the Jar app

      Motivates you to save daily

      Jar app will keep you motivated to save daily and ensure your investment can grow with each day. Therefore, there won't be any day you will miss depositing a certain amount in your piggy bank.

      In addition, you can deposit money as low as INR 1. Therefore, you won't have to worry about anything, like not being able to deposit the funds or missing the scheduled investments.

      Investment will be automatic

      As a micro-savings platform, the Jar app scans through your SMS folder to detect your transactions. It then rounds off the amount nearest to 10 and generates a spare change for your expenses.

      The app automatically deducts the difference from your bank account using UPI to invest in 99.9% pure digital gold.

      Offers safety of physical gold and return of stock market

      Sure, shares and stock markets give much higher returns in a short time. But, it is also very risky due to the volatile nature of the stock market.

      However, digital gold promises the same level of stability and safety as physical gold at comparatively fewer returns than the stock market.


      Easy liquidity

      Buying gold jewelry is an aspirational expense; it uplifts your social status, but it's an expensive affair. With the Jar app, you can invest money in small amounts in digital gold.

      As soon as it reaches your target amount required to buy the gold ornament you want, you can sell the digital gold and incur profit. Now, no more worry about buying expensive jewelry that can break your savings.

      Purchase it for yourself or as a gift for your loved ones - the Jar app makes gold transactions seamless and hassle-free.


      Investing in gold might not be accessible following the traditional method. But you can now save on Jar app for buying more gold this coming Diwali 2022.

      So, you shouldn't wait further and ensure you register yourself on Jar and start using this digital piggy bank.