Tuesday, November 17, 2009
GOLD WILL NEVER LOSE ITS LUSTER IN INDIA
In 1991, when the government of India shipped around 70 tonnes of Gold to UK under the deal with International Monetary Fund (IMF) for clearing the balance of payment, it was probably considered one of the biggest disgraces of the Gold loving nation but the Indian government has confidently brought back the forgotten pride in style by buying nearly 200 tonnes of Gold from IMF. Certainly, it came as a surprise to the whole country as nobody predicted a move such as this from the government in the present scenario but the government’s surprise move has moved India into the league of top 10 Gold holding nations at 10th spot, moving up from its previous position of 14th.
Historically, Indian Kings and Rulers had treasures, which mainly consisted of the Gold Bullions and Gold Coins but later all the Gold was looted by the foreign powers who ruled on India. Nevertheless, no love was lost for the shining looking metal and Gold never lost its sheen among the people of India. If the statistics from the experts are to be believed India is a Gold crazy nation and if the unofficial figures are to be trusted there is about 60000 tonnes of Gold in the country. Gold is considered to be the favorite gift on various festivals celebrated in the country and thanks to the huge number of festivals celebrated in India because of its multi-cultural and diverse facets. The figures also show that the sale of Gold Coins has always maximum at the time of Diwali Festival as the Hindus will pray the Goddess Laxmi embedded on the coin. One other interesting fact shows that more bullions of the precious metal are sold on the festival of Dhanteras, just before the Diwali festival.
Not only the festivals but also the Gold ornaments being put on by the Indian couples at the time of marriage has always kept the demand of Gold high in the country. Gold has been always considered as a major component in the “dowry”, Oooops….I said the wrong term as it’s called as “the Gifts” since the time dowry has become illegal in India. The Gold prices have almost tripled in last 10-12 years, which have certainly made it clear that Gold prices are here to rise and more people are now seeing the precious metal as a source of investment. Many banks have started attracting the investors with various plans of buying Gold bullion as investment but still the Indian market consists of almost 50% of non-certified Gold. There is still a lack of awareness among the consumer about the original quality of Gold and people have not yet zeroed down there confidence on any particular retailer. Nevertheless, the enthusiasm of Gold buyers is unbeatable in India and it doesn’t stop them from buying Gold bullion in bulk. Certainly, one thing is for sure that the Gold will never lose its luster in India.