India's love affair with gold | News | Al Jazeera

India's love affair with gold

Rising prices fail to dim the lustre of gold in the eyes of Indians.



    IN DEPTH

      Catering to India's rich

    The surging price of gold has done little to dent India's appetite for the precious metal or dim its lustre 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 US dollar.

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

    Al Jazeera's Prerna Suri reports from New Delhi, on the impact volatile prices are having on India's long love of gold.

    SOURCE: Al Jazeera and agencies


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