Gold has been doing pretty well in the last couple of months. It’s rise has been phenomenal and certainly above what some experts predicted. One of the biggest drivers of the gold price is supply and demand. When the demand rises, the price of gold can rises too. However, there isn’t enough gold in the world to last forever and the demand for the yellow metal. The good thing is that gold is recyclable so, a lot of the gold in circulation is reclaimed gold. One of the largest consumers of gold in the world is India. When analysts make predictions about where gold is headed, they look at what the Indian market is doing and howmuch gold the market can supply.For most gold dealers, including Australia Bullion company, keeping an eye on what countries like India and China are doing Is important.
Gold has an important role to play in the Indian culture. People in India have always understood how gold is important as a store of value. Gold is also a symbol of societal status and wealth. It is fundamental in many of the rituals that are performed especially in the rural areas. Many of the country’s rural inhabitants have a great affinity for gold because it is a portable and secure investment to make especially when bought in the form of jewellery.
To the Hindu and Jain people of India, gold is auspicious. It is believed that the ancient god Manu decreed that people should wear gold ornaments at all important ceremonies. Some of the important ceremonies where gold is won include Diwali, Akshay Tritiya, Onam, Pongal and Ugadi celebrated in South India; Durga Puja celebrated in the east; Gudi Pavda celebrated in the west; and Baiakhi and Karve Chauth in the north.
Giving gold as gifts is important in Indian marriage ceremonies. In India along, weddings generate 50% of the annual demand for gold. The wedding season comes with a rise in sales of gold, not only in India but across the globe. India has the largest diaspora population in the globe it is estimated that there are over 30 million Indians living outside of India. Many are still attached to the cultural traditions and celebrate the same holidays the current population of India is estimated at 1,37 billion.
Indians buy as much as 900 tons of gold per annum. Most of the gold bought is used in the making of gold jewellery. The country has an estimated 10,000 tons of stocks of gold jewellery and gold coins. Most of the gold in India is in people’s hands and not so much in the country’s central bank. Indian housewives are estimated to own about 11% of the world’s gold which is more than what the IMF, the United, Germany or Switzerland has. When the gold season in India comes around, the sale of gold spikes at the same time more companies like australian bullion company expect business to pick up during this season despite the fact that they are an Australian company. Reclaimed gold does not end up in one place, it feeds into the larger supply chain.
Most of the world’s gold bullion might end up in the making of gold jewellery which means that there is a lot of gold jewellery circulating in the world. Gold jewellery does not always keep its charm. It gets old, it gets dated. It breaks that is why gold buyers who buy old gold are so important. When you sell gold jewellery it could be to a buyer selling it to dealers and refineries all over the world. Your gold could originate from anywhere in the world so scrap gold can just as well end up in India.