Why is Gold so important in Indian society? Why are Indians obsessed with gold?
As the end of the month dawns near, I cannot help but recount the numerous weddings I attended this single month. Guess what all of them had in common (apart from lavish arrangements and mouth-watering food items of course) notwithstanding the differences of culture, language or region- 'Ubiquity of Gold'. Yes you heard me right, the yellow shiny stuff was present at almost all of these celebrations in generous amounts. So much so that it made me think critically upon the above question. Is this fascination of the yellow metal bordering almost on compulsive obsession, unique to Indians in general? If yes, what could be the reasons for it?
The tradition and culture does explain a part of gold’s allure, however majority of the vast purchases today are a modern phenomenon.India consumed only 65 tonnes in the year 1982 and until 1990 imports were all but banned. However the deregulation era that followed has seen an explosion in gold purchases.
The other reason could well be, as a form of safe investment for millions of citizens, since banking system has still not reached many places, so there are few options for people to invest (mostly in remote villages). Even knowledge and awareness about investments is less hence people buy gold. Gold also serves as a rainy day fund since it is widely accepted without any documentation.
As a part of cultural ethos, it is mostly used to be given to the bride in marriage and is often equated with social status and prestige.
In a country dominated mostly by informal economy, Gold serves as an effective way to store wealth without paying tax-along with property, it is the asset class that the authorities struggle to track.
On a light note according to some past statistics, Indian households are said to have gold equivalent to the gold reserves held by the top 10 gold stocking central banks of countries such as US, Germany, Italy, France, China and India.
So what do you think on the subject? Are we Indians really big time gold-diggers? Let us know your thoughts in the comments below😀😁
The tradition and culture does explain a part of gold’s allure, however majority of the vast purchases today are a modern phenomenon.India consumed only 65 tonnes in the year 1982 and until 1990 imports were all but banned. However the deregulation era that followed has seen an explosion in gold purchases.
The other reason could well be, as a form of safe investment for millions of citizens, since banking system has still not reached many places, so there are few options for people to invest (mostly in remote villages). Even knowledge and awareness about investments is less hence people buy gold. Gold also serves as a rainy day fund since it is widely accepted without any documentation.
As a part of cultural ethos, it is mostly used to be given to the bride in marriage and is often equated with social status and prestige.
In a country dominated mostly by informal economy, Gold serves as an effective way to store wealth without paying tax-along with property, it is the asset class that the authorities struggle to track.
On a light note according to some past statistics, Indian households are said to have gold equivalent to the gold reserves held by the top 10 gold stocking central banks of countries such as US, Germany, Italy, France, China and India.
So what do you think on the subject? Are we Indians really big time gold-diggers? Let us know your thoughts in the comments below😀😁
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