As gold prices continue to increase, shoppers are buying smaller jewellery items and making more cautious spending decisions ahead of Diwali.
For many South Asian families, buying gold or silver during the festive season is a long-standing tradition passed down through generations.
However, this year, traditions like giving jewellery are coming at a higher cost.
“We are gonna buy gold for Diwali. Not too much, not too little, just enough. But for sure, the prices are up,” one shopper said.
Another shopper acknowledged the higher prices but said they would still be buying gold.
“I know the prices are up and people will be backing off, but we will buy. Right now, we are on our way to buy gold.”
Those who sell gold say the higher prices aren’t stopping people from shopping, but they are changing what customers are looking for.
“People used to buy bigger products, now they are buying smaller things but they are buying more of them,” Vikram Rana, owner of Rana Jewelers said.
A change in Canadian spending habits
This shift comes as Canadians change their spending habits.
A new survey by the Bank of Canada shows that, despite feeling somewhat better about their finances, Canadians have weak spending intentions as inflation remains a constant concern.
Suki Badh, an economist, says, uncertainty is prompting consumers to be more cautious, with some opting for smaller purchases as a symbolic gesture.
“There is a bit of uncertainty and most of them (consumers) are being extra cautious,” said Badh. “So it’s more of a symbolic gesture, where they buy a token of xyz, but the amount that they buy has gone down and that will have a ripple effect throughout the rest of the year.”
TD also says gold purchases have cooled slightly with prices climbing.
Gold isn’t just being sold at jewellery stores during the festive season. TD Bank has been offering Diwali-themed gold coins and bars for a decade, reflecting the cultural significance of gold for many families.
“The first year we did it, there was definitely some interest from the community. Fast forward 10 years later, 10 designs later, and versions of various different symbols that celebrate diwali, we can’t keep it on the shelves,” Anthony Herceg, Head of Retail and and Precious Metals Distribution at TD, said.
Gold may be getting expensive, but for many families, rising prices aren’t getting in the way of an auspicious occasion.
This festive season, it seems all that glitters really is gold.