Gold Buying in India – A craze that never ends

Gold , a name that has shone over centuries of human civilization is glittering today even more on account of global recession. The rate of gold in India is hovering around Rs 22000/10gms but has that made any difference in buying of gold in the mind of Indians.Lets check that out in the rest of the article.

Gold is so pricey these days that a light chain will cost a bomb and do not even ask about the 'Rani Haar', so what women are doing is they are trying with low carat jewelery. When today you go to the jewelery shop , they would show the host of light weight gold items that would suit your budget. The one occasion of heavy gold buying in India is marriages where gold jewelery is given to the newly wedded couple as auspicious offering and also for security. Here the middle class is now having a separate budget for Gold Buying as it is one of the major expenses of Indian Wedding. Festivals are another buying extravaganza for buying of gold and here people in spite of high gold rate tend to buy gold in good quantity. The gold buying is also different in different parts of country, culture and strata of society.  

When you are in south of the country, women generally wear more of gold ornaments in public places whereas in north its much restricted to the family functions and festivals. People in metros are more conservative for wearing of gold may be due to security reasons with chain snatching incidents on the rise in the cities.

In cities gold buying is picking up as an investment tools also with lot of experts advising people to buy bars and coins or in dematerialized form. Now there are ETF's which gave you the facility to stock up gold in dematerialized form, where for a small fee the hassles of storing gold is taken care by the mutual fund companies. The rise in the gold price in recent years has attracted a lot of investors attentions when most of the stock markets crashed during recession. In more specific terms gold is used to hedge against recession and inflationary pressures in the economy.  

There is one more aspect to the gold buying in India and that is storing of gold by people having black money, that happens because gold is costly and it could be kept hidden in houses etc. That is one of the sad aspects, which the government of India has to look into and some steps or control measures in selling or buying of gold in the country.

Seeing for the history of human civilization, we could expect "All that Glitters is actually Gold"