Gold plays a significant role in Indian culture. It allures Indians with its beauty and charm. India’s infatuation with gold has grown stronger over the years. Indians account for the highest consumption of gold globally. Gold is more than an investment to the Indians. It holds a place in their hearts.
Most of the Indian population struggle to survive. Despite this reality, most Indians always find ways to buy and own gold irrespective of the gold rates. Here are some of the reasons why gold is always in high demanded in India.
Religion and auspicious days
Gold plays a significant role in religious ceremonies. Rising gold rates have never prevented devotees from donating gold ornaments. Indian temples around the world report receiving tons of gold on an annual basis. Religion is a priority to 90% of the Indians globally.
Astrology plays a part in the popularity of gold. Indian astrological practices have been carried out for thousands of years. A day is said to be special when the stars and the planets align themselves in favourable positions. Any good deed carried out on a special day such as buying gold will lead to a prosperous life. Some of the best days to buy gold in 2018 include:
Pushyami, with the following calendar dates: 7th September, 4th and 31st October, 28th November and 25th December. These are days when celestial bodies align with the moon to create special spiritual energy which yields positive results.
Dusshera, on the 19th of October. It is a religious festival celebrating the Hindu god Rama’s victory over the demon king Ravana.
Diwali, on the 7th of November. The word itself is derived from the Sanskrit word “Deepavali,“ meaning “series of lighted lamps,” hence, it is also known as the festival of lights. Diwali is considered the largest shopping period in India. On the day before Diwali (Dhanteras), people tend to purchase gold as it is believed that the precious metal would bring more wealth to the family.
Preserving family legacy
Gold is central to Indian life. The metal is passed on from one generation to another in a bid to keep the family legacy alive. For example, it is common for a mother to pass on jewellery to a bride during weddings. Passing gold from one generation to another helps people save money and avoid the rising gold prices.
Giving gold as a gift is also considered auspicious in India, and widely regarded as the highest form of giving in their culture. It signifies the value of an individual and purity of intent. During weddings, brides bring huge quantities of gold to the groom’s family. This is considered to bring good fortune.
Gold is considered the safest investment by Indians. Gold offers protection of wealth during difficult economic times. Owning gold is considered an extremely wise decision. This is reflected in the vast amount of gold held by Indians. With the Indian Rupee fluctuating every day, it makes sense to invest in gold for a stable and secure future.
Gold is a superb investment and a solution to many of the problems Indians face on a daily basis. The demand and price of gold are expected to increase in the future due to the economic and spiritual value it holds to the Indian people.
Important disclaimer: this document is not an official research report and the views expressed in it are those of the authors. The authors are not registered research analysts and there is no assurance the trends mentioned will continue or that the forecasts discussed will be realised. Gold as a commodity is not a specified investment for the purpose of giving advice under the Financial Services and Markets Act 2000, therefore, this it does not give rise to rights to claim compensation under the Financial Services Compensation Scheme.