Gold Prices Impact 'festival Of Lights'

Hindu women purchasing silver and gold ornaments on the eve of Dhanteras during the Diwali, the festival of lights in Hyderabad, India (file photo)Soaring gold prices are having an unexpected impact on a majorreligious holiday celebrated in South Asia and many other parts of theworld starting Saturday.  The Festival of Lights, or Diwali, is thebiggest holiday of the year for Hindus and other religions in SouthAsia and thousands of Hindus are expected to gather in London tocelebrate. But one Diwali tradition, buying gold, is changing becauseof high prices.

It'sa busy time of year for jewelers in London's East End. Many in thisneighborhood are from South Asia and are celebrating Diwali. Storemanager Vikram Santilal says buying gold bars or coins is traditionalat this time of year.

"During the Diwali season, you have thedays running up towards Diwali and the five days after Diwali, wherecoins, investment bars will be bought because it's very auspicious tobe bought, so you do find people to come in to but that memento aswell," he said.

But with the price of gold at an all timehigh, things are changing. Customers are looking at other preciousmetals, like platinum. Now only about $300 more an ounce than gold.

"Thereis change in some people traditionally expected platinum to be anexpensive metal, people are looking at it in the same terms as goldvalues," said Santilal.

Another jeweler, John Jacobs, is seeinga different trend. "The gold price has gone up so high, so what younormally get for 100 pounds earlier, you don't get that much for thesame amount, they get a better thing for the same price when it comesto diamond," he said.

Jacobs says both the old and the young are switching to diamonds this year. Their price has remained stable.

"Themain difference I have seen is people are moving from 22 carat goldjewelry to diamond jewelry, maybe what they say is true is diamonds areforever, and diamonds always is a lady's best friend," he said.

Theeconomic recession is also affecting Diwali buying, jewelers say ingeneral the pieces are smaller, whether gold, platinum or diamonds.