Purchasing gold and silver during Diwali is a deeply rooted Indian tradition driven by religion, wealth protection, and investment diversification. Between 2015 and 2025, both precious metals outperformed the Sensex, with gold slightly edging out silver in returns.
The practice of purchasing gold and silver coins during Diwali is embedded deep into India's cultural fabric. Many families purchase of gold and silver in the name of religion, tradition, safeguarding their money and spreading their investments. But what has performed better over the long term?
Gold and Silver have given returns more than what the Sensex has delivered over the period of Diwali 2015 to September 2025 The price of 10 gms of Gold was at Rs. 25,490 in Nov 2015. This rose by more than 342% to Rs. 1,12,750 in September 2025.
Silver also performed well during that time. It increased by over 300%, going from around Rs 34,197/kg in November 2015 to Rs 1,36,882/ kg in September 2025. Silver experienced its fair share of rallies as well. However, the verdict appears that gold has proven its mettle within this narrow comparison period.
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Historical data has shown how both metals have benefitted from changing economic conditions, geopolitical risks, and investor appetite.
Why Do Investors Buy Gold And Silver During Diwali?
Traditionally, investors have found gold to be the "safe haven" metal to invest in as a store of value. Silver has a wider range of factors affecting its prices, since it is a precious metal that has various other industrial uses, from manufacturing to solar energy to electronic applications.
Besides its practical uses, in India, gold has traditionally been associated with an affluent lifestyle, with great importance also being ascribed to gold in economic terms. Gold is a "must buy" on Dhanteras and Diwali.
Gold is regarded as an inflation hedge and a store of value against deflation, weak currencies and uncertain markets. It is also impacted by buying from central banks and demand for safe haven investment.
There are a number of different factors that drive demand for silver. Silver is widely used in solar panels, electric vehicles, electronics and other industrial applications, as well as in jewelry and investment demand. While this industrial demand can provide a supportive outlook for prices, it can also make silver more vulnerable to global economic activity.
