This a frequently asked question. No doubt, the demand for gold is seasonal throughout the world. There are different seasonal patterns to demand gold jewelery. The pattern differs from one country to another. The global demand for gold is normally strongest in the fourth quarter of the year. Demand for gold is generally the weakest in Northern Hemisphere summer, when European jewelery producers are mainly closed. Demand increases in fourth quarter of year, because different nations celebrate various festivals, and events at that time.
In the western world, especially at the time of Christmas, people buy more gold. Therefore, Christmas is the season to buy gold in West. On the eve of Christmas, people give gold gifts to their loved ones, and make their Christmas more beautiful.
As far as Islamic world is concerned Eid ul Fitr (end of Ramadan) is the foremost gold giving event. Eid Al Adha is another special event for the Muslims. It takes place seventy days after the Eid Al Fitr. Eid Al Adha is also a momentous gold-giving time to the friends, and family. Pilgrims who go to Mecca and Medina for Haj and Umra also buy gold for themselves, and for their relatives.
Pakistan is among the top ten consumers of gold. In Pakistan, people mostly buy gold at the time of wedding seasons. In every wedding in Pakistan, gold is considered essential item of dowry. The price of gold at time of marriage seasons is usually high.
In Turkey, demand is highest due to tourist purchases in the third quarter of year. Point to note is that the seasonal pattern does not influence cost of gold. It is commonly known in the gold markets, and is therefore, reasonably priced. In addition to demand, there are many other factors, which influence the cost of gold in Turkey.
In China and East Asia, people mostly buy gold at the time of Chinese New Year, which is actually the last part of January, or first half of February. Throughout the festivities, Chinese people prominently display gold, because it signifies good fortune.
In India, gold buying becomes higher during the wedding season, and at the times of festivals that differ from one region to another. The biggest Indian festival is Diwali. From region to region, the wedding season differs, but it is generally from November to May. The two-week Shrad period during August, is disappointing for ceremonies linked with gold buying. Adik Mas follow this, which is also not a time to buy gold. (Accurate dates differ, as the Hindu calendar is a lunar one.)
You can find visible spike in months of January and September, because at that time Indian manufacturers typically refill inventories to fulfill the demands of two Indian wedding seasons. The festival of Diwali starts in the month of November, and ends in December. The second begins in late March, and goes to early May. Even the price of gold increases with increase in the value of dollar, people still buy gold especially at times of celebrations, and now buying gold is turning into a need.
Source by Jack Wogan