The five day Diwali Festival held just a couple of weeks ago, was celebrated by about a billion Indians of almost all the main religions in India, including Hinduism, Buddhism, Jainism and Sikhism. Diwali is also a very important occasion in the neighboring country of Nepal. In English, Diwali is usually called the “Festival of Lights”, but other names like “Festival of Gold” and “Wedding Festival” are also commonly used in reference to this festive occasion.

With India becoming a major consumer force in the global gold and diamond market, it is interesting to see how the Diwali Festival affects jewelry sales in the country. Gold and silver coins are integral items of Diwali, most commonly the coins with an image of Goddess Lakshmi, who is worshipped intensively during the festival. The Goddess Lakshmi is supposedly responsible for bestowing wealth upon her worshippers. Lakshmi-puja, the Lakshmi worshiping ritual, is usually held on the third day of the Diwali Festival, when believers hope that the goddess will visit their homes and reward them for their efforts. As it is also known as the “Festival of Lights”, many lamps and candles are lit throughout the Diwali nights, with additional gold decorations.

And why are diamonds important during Diwali? Although diamonds are used in some Indian rituals, most of the diamonds purchased for the Diwali Festival are given as a dowry at weddings which take place in close proximity to the festival. Apparently, thousands of Indians plan for their weddings to take place around Diwali. According to their belief, this can promote a prosperous future for the young couple. Dowry gifts are an essential part of such weddings, and include gold, silver, diamonds and any other type of fancy jewelry.

Every year, several months before Diwali, sales of gold, silver and diamonds begin to rise, a trend that continues to climb as the Diwali Festival approaches. Once the holiday is over, jewelry sales take a very sharp downward turn, so this festive occasion certainly has a significant effect on the gold and diamond industry in India. Diamond sales in India are on a constant rise, all year round, but they are becoming increasingly identified with the Diwali Festival. With the American dollar’s value descending and gold prices rising, the diamond industry can find a bright light in the advanced diamond consumption in India. Undoubtedly, the role of the Diwali Festival in Indian culture will assist in keeping India a major player in the global diamond market in years to come.