Lower gold prices are drawing Diwali shoppers to a jewellery store in Mississauga’s Malton neighbourhood, where families were picking out gifts ahead of Sunday’s celebrations, CBC News reports.

Rahul Kumar, an owner of Ashok Jewellers, told CBC reporter Isha Bhargava that the holiday shopping period has been busy, with customers buying gold bars and jewellery and showing interest in silver.

“Diwali is one of our main seasons and this year it has been pretty busy,” Kumar said.

He said gold prices were around C$5,800 to C$5,900 an ounce, compared with about C$7,200 to C$7,300 last year. Kumar linked the lower prices to an increase in customers buying gold.

The store was particularly busy on Friday, during Dhanteras, the opening day of the five-day festival. People often mark the occasion by buying precious items such as gold and silver, or new kitchen utensils, to welcome prosperity into their homes.

For shopper Jake Dheer and his wife, the visit was also a chance to celebrate their newborn grandson with a gift of gold jewellery.

“We’re Hindus, so for us, buying gold and silver is very auspicious, especially during any celebration like Diwali or, in our case, a birth,” Dheer told CBC.

He said the meaning of the gift mattered more than its price, but welcomed the decline as food, clothing and decorating costs put pressure on family celebration budgets.

Another shopper, Khamar Sarajudin, said he had held off buying gold for several months while watching prices. His family was looking for a birthday gift for his daughter.

Kumar expected more shoppers on Sunday. Despite the increased customer traffic, he said sales were about the same as at this time last year, noting that many people are struggling financially.

Sources