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Explained: India’s Gold Demand During Diwali

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India's gold demand during diwali

Indiaโ€™s Gold Demand During Diwali

In India, goldโ€™s significance goes far beyond investment and jewelry. The yellow metal is woven into Indiaโ€™s cultural history and is revered by a population of over 1.3 billion.

India is one of the largest markets for gold consumption, with jewelry, bars, and coins accounting for the bulk of annual demand. Indian gold demand typically peaks between October and December on the back of Diwali, the festival of lights, followed by thousands of weddings.

But why do Indians buy gold during Diwali?

Goldโ€™s Significance During Diwali

Indians consider it auspicious to purchase goldโ€”a symbol of wealth, purity, and prosperityโ€”on many festive occasions, and Diwali is the biggest one of them.

Diwali is a five-day festival that celebrates the triumph of good over evil and light over darkness, based on Hindu mythology. For many Indians, this festival is associated with welcoming good luck, positivity, and prosperity.

People often dedicate gold purchases during Diwali to deities, especially Lakshmi, the goddess of wealth. Gold is also a popular festive and wedding gift at this time of the year.

Indiaโ€™s Record Gold Demand in Diwali 2021

Indiaโ€™s gold consumption in the second half of every year is typically higher than in the first half, coinciding with Diwali in October (beginning of Q4), according to data from the World Gold Council.

YearGold Jewelry, Bar, and Coin Demand
(tonnes)
YoY % Change
H1 2010447N/A
H2 2010555N/A
H1 201159032.1%
H2 2011384-30.8%
H1 2012404-31.5%
H2 201251032.7%
H1 201355737.9%
H2 2013402-21.3%
H1 2014370-33.5%
H2 201446315.3%
H1 2015350-5.5%
H2 20155079.5%
H1 2016229-34.5%
H2 2016437-13.9%
H1 201736358.4%
H2 2017408-6.6%
H1 2018341-6.2%
H2 20184202.9%
H1 20193729.2%
H2 2019318-24.2%
H1 2020166-55.5%
H2 2020281-11.8%
H1 202128572.3%
H2 202151282.3%
H1 20223067.3%

Following a significant drop in demand in 2020, Indians bought a record amount of gold jewelry in Q4 2021 at 265 tonnes, worth $15.3 billion at the time. Overall, gold jewelry, bar, and coin demand in H2 2021 saw an 82% increase year-over-year.

This increase was largely driven by the festive season and pent-up demand from subdued celebrations and consumption in 2020. As of the first half of 2022, gold demand was up 7.3% relative to 2021.

With Diwali celebrations in full swing, will India see another record quarter for gold demand? It remains to be seen, with goldโ€™s festive tailwinds likely to meet economic headwinds in the form of uncertainty and higher import duties.

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Charted: If Gold Was Shared Equally, How Much Would You Get?

There are 244,000 metric tons of known gold reserves. And 8 billion people. Here’s the answer to: what if gold was shared equally?

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This chart examines a hypothetical question of how much gold there is in the entire world for every person by dividing all known reserves by current global population.

Charted: If Gold Was Shared Equally, How Much Would You Get?

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Desired for millennia because of its shine and rarity, gold is still the safe haven asset (with fairly decent returns) in times of uncertainty.

This chart examines a hypothetical question of how much gold every person in the world would get if all discovered gold was shared equally.

Data for this graphic is sourced from the U.S. Geological Survey and from the UNโ€™s World Population Prospects 2024.

Thereโ€™s Not a Lot of Gold for 8 Billion People

Turns out, there really isnโ€™t a lot of gold in the world.

To date, only 244,000 metric tons of gold have ever been discovered. This includes historical production and current known discoveries.

That works out to about 30 grams (about one troy ounce), or six gold rings, for every single human being on the planet.

CategoriesFigures
Gold Discovered
(Metric Tons)
244,000
World Population8,161,972,572
Gold per Person
(Metric Tons)
0.00002989
Gold per
Person (Grams)
29.89 (or one ounce)

Of course, jewelry isn’t the only use of gold (though it does account for the largest share of above-ground use).

Central banks have quite a bit in their reserves, with the U.S. holding the most at roughly 8,000 tonnes.

At sixth place China (2,200 tonnes) has been steadily increasing its reserves in the past year, in a bid to diversify foreign exchange reserves away from the U.S. Treasury bonds.

Largest Gold Producers

And then thereโ€™s all the gold beneath the ground, spread out in massive mines across the world. Of them, Australia is home to two in the top 10, and is also the second-largest producer.

Whoโ€™s the largest producer? Thatโ€™s Chinaโ€”even though it doesnโ€™t have any large mines on the same scale as those found in the U.S. and Australia. Instead it has numerous smaller ones, and coupled with efficient smelting infrastructure, ends up producing more volume.

Finally, South Africa held the top supplier spot between 1900โ€“1970. Its production peaked at about 1,000 tonnes annually, the most by any country in a single year.

Learn More on the Voronoi App

Need even more gold graphics? Good thing we have a few. Check out: Visualizing Gold Consumption vs. Domestic Supply to see which countries use the most gold.

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Real Assets

Charted: The Global Mining Industry, by Market Cap

Australia tops the list, with its major mining companies totaling $353 billion in market cap.

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This graphic breaks down the market value of the entire global mining industry.

Charted: The Global Mining Industry, by Market Cap

This was originally posted on our Voronoi app. Download the app for free onย iOSย orย Androidย and discover incredible data-driven charts from a variety of trusted sources.

This graphic breaks down the market value of the entire global mining industry, as of Jan. 16, 2025, using data from Companiesmarketcap.com.

Note that this data only covers publicly-traded companies.

Australia and Canada Lead

Australia tops the list, with its major mining companies totaling $353 billion in market capitalization. The country is home to two of the biggest miners in the world, BHP and Rio Tinto.

CountryCompanyMarket Cap (USD)
๐Ÿ‡ฆ๐Ÿ‡บ AustraliaBHP Group125B
๐Ÿ‡จ๐Ÿ‡ณ China China Shenhua Energy103B
๐Ÿ‡ฆ๐Ÿ‡บ AustraliaRio Tinto97B
๐Ÿ‡บ๐Ÿ‡ธ U.S.Southern Copper77B
๐Ÿ‡บ๐Ÿ‡ธ U.S.Freeport-McMoRan58B
๐Ÿ‡จ๐Ÿ‡ญ SwitzerlandGlencore55B
๐Ÿ‡ธ๐Ÿ‡ฆ Saudi Arabia Maaden49B
๐Ÿ‡บ๐Ÿ‡ธ U.S.Newmont48B
๐Ÿ‡จ๐Ÿ‡ฆ CanadaAgnico Eagle Mines43B
๐Ÿ‡ฎ๐Ÿ‡ฉ Indonesia Bayan Resources42B
๐Ÿ‡ฒ๐Ÿ‡ฝ MexicoGrupo Mรฉxico39B
๐Ÿ‡ฆ๐Ÿ‡บ AustraliaFortescue36B
๐Ÿ‡ฌ๐Ÿ‡ง UKAnglo American37B
๐Ÿ‡ง๐Ÿ‡ท BrazilVale37B
๐Ÿ‡จ๐Ÿ‡ณ ChinaZijin Mining57B
๐Ÿ‡ฎ๐Ÿ‡ณ India Coal India27B
๐Ÿ‡จ๐Ÿ‡ฆ CanadaBarrick Gold28B
๐Ÿ‡จ๐Ÿ‡ฆ CanadaWheaton Precious Metals27B
๐Ÿ‡จ๐Ÿ‡ฆ CanadaNutrien26B
๐Ÿ‡จ๐Ÿ‡ฆ CanadaFranco-Nevada24B
๐Ÿ‡จ๐Ÿ‡ฆ CanadaTeck Resources22B
๐Ÿ‡จ๐Ÿ‡ฆ CanadaCameco22B
๐Ÿ‡ฌ๐Ÿ‡ง UKAntofagasta21B
๐Ÿ‡ฎ๐Ÿ‡ณ IndiaVedanta20B
๐Ÿ‡ท๐Ÿ‡บ RussiaNornickel18B
๐Ÿ‡จ๐Ÿ‡ฆ CanadaIvanhoe Mines15B
๐Ÿ‡จ๐Ÿ‡ณ ChinaYanzhou Coal Mining15B
๐Ÿ‡จ๐Ÿ‡ฆ CanadaKinross Gold13B
๐Ÿ‡ฆ๐Ÿ‡บ AustraliaNorthern Star12B
๐Ÿ‡ท๐Ÿ‡บ RussiaSeverstal11B
๐Ÿ‡จ๐Ÿ‡ฆ CanadaFirst Quantum Minerals11B
๐Ÿ‡ฐ๐Ÿ‡ฟ KazakhstanKazatomprom10B
๐Ÿ‡ฆ๐Ÿ‡บ AustraliaSouth3210B
๐Ÿ‡บ๐Ÿ‡ธ U.S.Royal Gold9B
๐Ÿ‡จ๐Ÿ‡ณ ChinaGanfeng Lithium9B
๐Ÿ‡ธ๐Ÿ‡ช Sweden Boliden8B
๐Ÿ‡จ๐Ÿ‡ฆ CanadaAlamos Gold8B
๐Ÿ‡จ๐Ÿ‡ฆ CanadaPan American Silver8B
๐Ÿ‡จ๐Ÿ‡ณ ChinaTianqi Lithium7B
๐Ÿ‡ฆ๐Ÿ‡บ AustraliaEvolution Mining7B
๐Ÿ‡จ๐Ÿ‡ฆ CanadaLundin Mining7B
๐Ÿ‡ฎ๐Ÿ‡ณ IndonesiaNMDC7B
๐Ÿ‡จ๐Ÿ‡ฆ CanadaLundin Gold6B
๐Ÿ‡ฎ๐Ÿ‡ฉ India United Tractors6B
๐Ÿ‡ฏ๐Ÿ‡ต JapanSumitomo Metal Mining6B
๐Ÿ‡ฒ๐Ÿ‡ฝ Mexico Fresnillo6B
๐Ÿ‡ต๐Ÿ‡ฑ PolandKGHM6B
๐Ÿ‡ฟ๐Ÿ‡ฆ South AfricaHarmony Gold6B
๐Ÿ‡ฌ๐Ÿ‡ง UKEndeavour Mining5B
๐Ÿ‡ฟ๐Ÿ‡ฆ South AfricaImpala Platinum5B
๐ŸŒ Global TotalAll Companies Combined1.4T

Rich in minerals, Australia is the world’s largest producer of iron ore, essential for steel production, and lithium, a key component in batteries.

While Canadaโ€™s economy has struggled to keep pace with its southern neighbor, its mining industry remains formidable.

The countryโ€™s mining sector has a combined market capitalization of $344 billion, making it the second-largest globally.

Canada, the worldโ€™s second-largest country by area after Russia, has vast natural resource wealth. It is particularly rich in gold, copper, nickel, and potash.

United States with miners totaling $228 billion and China with companies totaling $206 billion come in third and forth, respectively.

Learn More on the Voronoi App

If you enjoyed this topic, check out thisย graphic showing the number of mines that must be developed to meet the expected demand for energy transition raw materials and chemicals by 2030.

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