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With the marriage season in full swing, demand for gold in India normally surges at this time of year. Gold traders however, have noted that there is a reluctance by the Indian consumer to buy gold due to current price rises.
Indian weddings are renowned for being sealed with gold. Brides are adorned with elaborate sets of gold jewellery. Families start amassing gold in preparation for marriage when their children are born.Gold is passed down through the generations. The amount of gold you own or display depicts your social standing in society.
With the fluctuating price of gold due to the current global economic crisis, coupled with modernisation and changing views in the middle classes, some hold the opinion that India's attraction with gold maybe over.
India, however, still remains one of the world's largest importers of gold. If the marriage traditions holds strong and the price of gold stabilises, traders are predicting that this will encourage Indians to once again see gold as a defensive asset and a sound investment in the present economic climate. |