15th October 2025, Kathmandu
Nepal’s financial hub, is gearing up for Tihar, the beloved Festival of Lights, but with a notable change in tradition from the nation’s central bank. The Nepal Rastra Bank (NRB) has announced a significant policy shift for the fiscal year 2025/26, deciding to halt the sale of its popular gold coins, known as Asarfi, during the auspicious festive season.
NRB Begins Sale of Silver Medallions
This move, a departure from a long-standing tradition where gold and silver commemorative coins were issued to the public, is driven by the central bank’s strategic response to global economic forces and internal policy adjustments. Instead of the coveted gold coins, the NRB’s Mint Division has commenced the exclusive sale of four types of silver medallions, offering a compelling alternative for devotees seeking to purchase auspicious metals during the festival.
The Gold Halt: High Volatility and Policy Prudence
The decision by the NRB to suspend the sale of gold Asarfi this Tihar is primarily rooted in two key economic factors: internal policy prudence and the high volatility in global gold prices.
Nepal’s central bank is tasked with maintaining financial stability, and the process of importing and distributing gold is fraught with risks, particularly when international prices are witnessing unprecedented fluctuation. Recent market reports indicate that gold prices in the local bullion market have soared, continuously breaking new records. The global price for gold has been volatile, pushed by geopolitical tensions, economic uncertainty, and expectations surrounding US interest rate movements. By halting the sale of gold coins, the NRB aims to mitigate the risk associated with importing and selling this highly volatile asset to the public. This proactive measure aligns with the bank’s broader strategy of safeguarding foreign exchange reserves and managing speculative demand, which often surges during the Tihar festival.
Historically, the demand for gold and silver coins peaks during Tihar, specifically on Dhanteras (the day before Laxmi Puja), when purchasing precious metals is considered highly auspicious for inviting wealth and prosperity. The central bank’s exit from the gold market during this peak demand period will likely channel that pressure toward commercial gold dealers, who are already struggling with supply shortages. While this decision ensures NRB’s financial stability, it underscores the challenging environment facing Nepal’s bullion market, where daily demand often exceeds the supply capacity.
The Silver Lining: Embracing Cultural Significance with Silver Medallions
In place of gold, the NRB has fully transitioned its festive commemorative metal offering to pure silver medallions. This strategic pivot allows the central bank to participate in the cultural tradition of Tihar while maintaining tighter control over its foreign currency expenditure.
The Mint Division is offering four distinct 10-gram silver medallions, each priced at Rs 3,200:
- Laxmi Medallion: Named after Goddess Laxmi, the deity of wealth and prosperity, whose worship on the third day of Tihar (Laxmi Puja) is the core of the festival. Buying the Laxmi medallion is a direct ritualistic act of inviting fortune into the home.
- Ganesh Medallion: Lord Ganesh is widely worshipped as the remover of obstacles and the god of beginnings, often honored alongside Goddess Laxmi to ensure that prosperity is unhindered.
- Jag Laxmi Medallion: Representing a form of the goddess of wealth, the Jag Laxmi medallion reinforces the theme of universal prosperity and abundance.
- Cow Medallion (Gai Medallion): The third day of Tihar is also dedicated to the worship of the cow (Gai Tihar), which is revered as a symbol of nourishment, abundance, and Mother Earth in Hinduism. The Cow Medallion connects the purchase of precious metal directly with the traditional Tihar rituals that honor the sacred relationship between humans and nature.
This selection of medallions perfectly captures the spiritual essence of Tihar, which emphasizes the worship of divine prosperity (Laxmi and Ganesh) and respect for nature (Cow). Silver, like gold, holds significant ceremonial value during Tihar. By offering these specific medallions, the NRB acknowledges the public’s desire to perform the auspicious purchase of Dhan (wealth) while managing the broader macroeconomic risks associated with gold.
Strict Controls: Ensuring Fair Distribution and Traceability
The NRB has implemented strict measures for the sale of these silver medallions to ensure fair distribution and accountability, reflecting the high public demand for commemorative coins:
- Quantity Limit: Each customer is restricted to purchasing only one piece of any medallion. This is a crucial step to prevent hoarding by dealers or institutional buyers and ensures that the maximum number of families can participate in the ritual purchase.
- Identification Mandate: Buyers are required to present a photocopy of their citizenship certificate or any valid ID containing their citizenship number. This rule ensures traceability and prevents individuals from queueing multiple times to circumvent the one-piece limit.
By imposing these restrictions, the central bank aims to manage crowds, minimize black market activities, and preserve the commemorative nature of the sale. This measured approach contrasts with previous years when massive queues for gold and silver coins were a common sight at the Mint Division in Babarmahal.
The Market Impact: A Surge in Private Bullion Demand
The central bank’s policy decision will inevitably redirect festive gold demand entirely to the private bullion market. Bullion traders are likely to see an increase in demand for gold jewellery and smaller silver items as consumers seek alternatives to the now-unavailable gold Asarfi.
Given the already existing gold supply crunch—where daily market demand for gold has been reported to be significantly higher than the banks’ import capacity—the NRB’s decision is expected to intensify pressure on private jewelers. While the private sector will cater to the bulk of the demand, the purity assurance provided by the NRB’s government-minted Asarfi was a unique draw for many customers. The shift to officially minted silver medallions offers a quality-assured, government-backed alternative that is both culturally relevant and economically prudent for the nation’s financial managers.
The NRB’s move this Tihar is a clear signal: while the central bank remains committed to facilitating cultural traditions, its primary focus remains macroeconomic stability, especially in the face of volatile global commodity markets and the need to protect foreign exchange reserves. This year, silver takes the spotlight, beautifully embodying the festival’s spirit of light and prosperity.
For More: NRB Begins Sale of Silver Medallions