India’s love affair with gold

India loves gold! Gold is the most favourite for gift-giving. India is the largest retail market for gold, consuming more than 700 tonnes in 2008. In early November, the International Monetary Fund (IMF) completed the sale of 200 tonnes of gold to the Reserve Bank of India. India’s massive gold purchase sparked a rally in gold prices, and India’s government now has the 10th largest gold holdings in the world, up from its previous 14th place.

World Gold Council has the answers to 99 Most Frequently Asked Questions About Gold:

Top 10 Official Gold Holdings in Tonnes, September 2009:

*International Monetary Fund
**includes Nov. 2009 purchase from IMF
Sources: The Canadian Press, World Gold Council

India’s love affair with gold – video news report from Al Jazeera’s Prerna Suri from New Delhi, on the impact volatile prices are having on India’s long love of gold. (13 Nov 09)

The surging price of gold has done little to dent India’s appetite for the precious metal or dim its luster in their eyes.

India is the world’s largest private gold consumer, accounting for about 20 per cent of global demand.

India’s cultural affinity for gold is legendary. Indian brides are traditionally bedecked in heavy gold jewellery – seen as a symbol of wealth, prosperity, and also security. It is estimated that two-thirds of the gold consumption is related to Indian weddings. With around 10 million marriages a year in the country of 1.1 billion people, wedding-related demand is huge, especially during the nuptial season between October and January, April and May.

But this wedding season, gold prices are at an all-time high, forcing many people to cut back on their purchases.

The rise in the price of gold is a reflection of the loss of confidence in foreign currencies, especially the strength of the U.S. dollar.

However, prices have been boosted by India purchasing 200 tonnes of gold from the International Monetary Fund (IMF).

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Tags: Al Jazeera English, Asia, brides, commodity, consumers, culture, economy, gifts, gold, gold jewellry, IMF, India, International Monetary Fund, investment, marriages, metals, Prerna Suri, Reserve Bank of India, security, Top 10, video, wealth, weddings, World Gold Council

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