Rising gold prices reshape Diwali shopping as Toronto families buy smaller, more cautious items

Rising gold prices are reshaping how Toronto's South Asian families celebrate Diwali, traditionally marked by purchasing gold or silver jewelry—a custom passed down through generations.

Vikram Rana, owner of Rana Jewelers, observed the shift firsthand. "People used to buy bigger products, now they are buying smaller things but they are buying more of them," he said. One shopper said, "We are gonna buy gold for Diwali. Not too much, not too little, just enough. But for sure, the prices are up." Another echoed the determination to proceed despite costs: "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."

Economist Suki Badh noted the psychology behind the change. "There is a bit of uncertainty and most of them (consumers) are being extra cautious. 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."

A Bank of Canada survey found Canadians feel somewhat better about their finances overall but maintain weak spending intentions, with inflation remaining a constant concern. TD Bank reports gold purchases have cooled slightly with prices climbing. The bank has offered Diwali-themed gold coins and bars for 10 years. "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," said Anthony Herceg, Head of Retail and Precious Metals Distribution at TD.