India and gold have a long tradition. Gold is a prized commodity in India: families use it as a dowry for their daughters. This mimics many other communities around the world, and for good reason – gold does not rust and it is a sturdy metal. There are also many festivals that encourage people to buy gold for themselves or for their family members, typically women.
This is not too surprising: India is one of the biggest consumers of gold products in the world, if they aren’t the biggest by now. The festivals in India start at the end of August every year, and this lasts until November, when the Diwali celebrations begin in earnest.
There are a number of reasons why the tradition of buying gold remains to this day in India. One of the major reasons for buying gold is that it renders the buyer lucky.
Some of their other festivals are also related to the concept of luck: Akshaya Tritiya is one such example. This day and other like it are one of the best days on which to do anything major. This is why jewellery shops and others that trade in gold, experience a surge in trade on these festival days.
Jewellery shops and other companies that cater to the demand of those who are buying gold do not always expect to sell as much of the precious metal. Gold buying occurs in cycles: people generally buy gold when they’re feeling uncertain about what things the future might hold in store for them. This is because gold is, and has always been, a safe investment. This trend reverses during the good times – the people who are buying gold during the uncertain times generally focus on other investment vehicles during the good times.
But one thing keeps people out of jewellery stores – rising gold prices. If it were not for this then there would be many more people who are buying gold.
The demand for gold is rising in developing countries such as India and China. This can partly be explained by the consumers in these countries wanting the same goods and services that the consumers in developed countries have enjoyed and are still enjoying.
Another reason is that they have more money to spend and they are just willing to spend more of their money on items that will bring them some degree of happiness.
Author bio:
The Gold Company wrote this article about the importance of buying gold in the Indian communities.