23,000 Tons of Gold and Counting
India’s private gold horde, the amount of gold held by individuals and families, currently stands at 23,000 tons of physical gold. The Indian festival season is just getting started and this is traditionally the time of year when most of the global gold begins flowing into India. Indians love to acquire gold especially during the festival of lights, Diwali. The ritual of buying gold during Diwali is equivalent of inviting Lakshmi, the Goddess of wealth and prosperity, into ones home.
As you can see acquiring a little gold during the month of October is at the top of the list for Indians for religious reasons not necessarily wealth building reasons. When the goal is to invite a deity into your home to bless you and your family with wealth and prosperity it may be time to pick up a bracelet, necklace, ring or, at the very least, a gold coin or two. Needless to say, the Indian population is not making offerings to Lakshmi with an ETF paper gold contract. My guess is that would be the ultimate in disrespect and for the coming year a hail storm of bad luck would befall the family. Just pointing out another reason to stay away from paper gold.
Not only is acquiring physical gold an important part of this celebration, but there are specific times when various sects are to acquire their gold. It seems you can’t just ring up your local jeweler or coin dealer and begin the process.
Below is a calendar to help us better understand how this particular aspect works. The times given are specific to the Central Time Zone in the U.S. With the definition of “auspicious” being – “conducive to success, favorable” I would say during these specific time frames the gold market is completely out of control with buyers.
Pushya Nakshatra to Buy Gold
October 22, 2016 (Saturday) – 09:57 to 31:06+
Auspicious Choghadiya timings between 09:57 to 31:06+
Afternoon Muhurta (Char, Labh, Amrit) = 12:31 – 16:36
Evening Muhurta (Labh) = 17:57 – 19:36
Night Muhurta (Shubh, Amrit, Char) = 21:15 – 26:10+
Early Morning Muhurta (Labh) = 29:27+ – 31:06+
Ravi Pushya Yoga to Buy Gold
October 23, 2016 (Sunday) – 07:06 to 10:09
Auspicious Choghadiya timings between 07:06 to 10:09
Morning Muhurta (Char, Labh, Amrit) = 08:27 – 10:09
Dhantrayodashi Muhurat to Buy Gold
October 26, 2016 (Wednesday) – 29:45+ to 31:09+
Auspicious Choghadiya timings between 29:45+ to 31:09+
Dhantrayodashi Muhurat to Buy Gold
October 27, 2016 (Thursday) – 07:09 to 31:10+
Auspicious Choghadiya timings between 07:09 to 31:10+
Morning Muhurta (Shubh) = 07:10 – 08:30
Morning Muhurta (Char, Labh, Amrit) = 11:10 – 15:11
Evening Muhurta (Amrit, Char) = 16:31 – 21:11
Night Muhurta (Labh) = 24:31+ – 26:11+
Early Morning Muhurta (Shubh, Amrit) = 27:51+ – 31:10+
It seems this year the monsoon has been particularly good to the farmers in India and gold is expected to be in very high demand. As we have reported on Shadow of Truth for the past several months gold smuggling, from all indications, has been highly active this year beginning in March when the government of India imposed a new tax on physical gold in an attempt to curb appetite for the yellow metal. When will the government learn they can not compete with God?
Guess what happens immediately following the festival of lights? The wedding season kicks into high gear. What better way to celebrate wealth and prosperity than by a demonstration of said wealth in the form of a union? Maybe not the way we see it, but it seems to fit with the Hindu teachings celebrated in India.
It’s a relief to hear, then, that India just had its best monsoon season in three years, with heavy rains washing away people’s fears of yet another drought. Add to that the fact that the yellow metal is now trading in the affordable $1,250 to $1,260 range—a sizeable discount from only a month ago—and gold jewelry sales are expected to surge as much as 60 percentover last year, according to the India Bullion and Jewellers Association.
That would take sales to a four-year high as we near Diwali—traditionally a time when gold-buying is considered auspicious—which would help support prices.
Following Diwali comes the important Indian wedding season. It’s almost impossible to exaggerate how massive this industry is, with one India-based research firm expecting it to hit 1.6 trillion rupees ($24 billion) by 2020. Between 35 percent and 40 percent of a typical Indian wedding’s expenses is devoted to gold jewelry. If we use the higher estimate, that means close to $10 billion could be spent on gold alone, but for spending like this to happen, a strong monsoon is needed, which farmers in many parts of India got this year. Source
My guess is next year when we report on the Diwali and wedding season in India we will be reporting the families and individual citizens are holding the worlds largest gold stack at 24k or 25,000 tons of gold. Oh to be in India in the fall!