India The Golden Bird: Cultural and Pragmatic Reasons Why Indians Buy Gold
India was called the “Golden Bird” in ancient times. Gold has special religious and financial significance. As a result, India has always been the largest consumer of gold in the world for many years.
Gold and its link to Hindu religion and mythology
Gold is not only the symbol of wealth and status in India, it also has special cultural and religious value. In Hindu mythology, it’s mentioned that God Brahma “the creator” was born from the cosmic egg of gold. Gold is also a symbol of Hindu Goddess Lakshmi, the reason why you will never find toe rings made of Gold in India. Since it represents the Goddess, it should not be soiled by touching human feet.
Gold as a store of value and its great significance to society
In India, people buy gold on almost all specials occasions like festivals, weddings, birthdays or any special event. “No Gold, No Wedding” is a common saying in India and Gold and jewellery expenses constitutes almost half of the total marriage expenses.
Acquiring gold is a lifetime goal for people of India. It is considered as liquid cash which can be converted to cash when need arises. It is a status symbol for wealth. Gold has great value as heirloom also: it is passed from generations to generations as ancestral property.
No Gold, No Wedding
Not to mention, gold has great ornamental value. It is inseparable part of Indian fashion industry and women of all ages love wearing gold in India. Another significance for women comes from fact that since most of them are not financially independent nor educated, gold has always served a source of insurance during unfortunate events.
Financial Facts about GOLD in India
India is largest market for gold jewellery in the world, representing 746 tonnes of Gold in 2010 ( Source: World Gold Council). As popularly said “Gold never loses its sheen in India”. The chart of Gold vs. INR (Source: Goldprice.org) shows just why gold is such a wondeful investment tool in India.