When you think about Gold, your mind will focus on India-world’s 2nd largest consumer of Gold. The World Gold Council (WGC) Official said India gold demand could be 900 tonnes in 2013, from its previous forecast of 1,000 tonnes. This number is based on data gathered from the import bullion banks, government agencies and non-resident Indians pleaded imports. This excludes the gold jewelry imported by Indians returning from travel abroad and smuggled gold in India.
If so large amounts of food is imported, it is perfectly understandable; it would be feeding people. But what is mainly the use of gold? It may not have a sound rationale, but Indian have traditionally been buying gold.
Indian buy gold for a variety of reasons, for due to its auspicious feeling; as an investment (Gold still has value over the long term, a tag of being a safe haven); protect against inflation; asset allocation, etc. Gold also involves a high perceived value and a high emotional quotient. It strengthens the proximity of relationships. Gold coins in smaller mainline denominations as well longer considered suitable for corporate gifts and rewards for competitions and for memorial gifts.
Without a lot of successful, of course. Indians love gold. They be positively fancy to the metal.
Most people think that Indians are crazy about gold. While this statement may not be entirely negative, the truth is that gold has always had a special meaning for all ages in India.From rural housewives in India and the 27-year-old would-be bride to generating black money, gold is simply a store of value or an international currency – is part of a lifestyle, a demonstration initial wealth, status, position, etc. Gold is provided as a means to various memorial commitments as golden anniversaries, weddings jubilee, gold medals, gold Credit Card, etc. In addition to its safe haven status during times of need. Over the centuries, certain festivals of India have been the moment to splurge on gold. Festivals including Akshay Trithiya and Dhanteras are believe auspicious time to buy the precious metal.
Let’s get into some basic concepts, Why Indians Love Gold so Much:Worldwide roughly 52% of the gold produced is used for making jewelry, about 12% is used for industrial purposes, 18% as gold investments (ETF Holdings) and the remaining 18% is holdings of central banks. Outside 52%, jewelry around the world intake most occur in India. About a middle-class home purchase Rs 15-80 lacs worth of gold jewelry in life.