In India, few things have as much significance as Gold. But what is it that makes gold so special for the people of our country? Why is so much gold bought in our country that we surpassed China to become its largest importers in the world? In this article we’ll try to get an answer to these questions. Let’s take a look on 7 reasons which collectively contribute to the significance of gold in India:
- Importance of golden ornaments: This is the #1 reason why gold has a significant value in our country. Gold ornaments are considered a must for every women, and therefore gold sets and other gold jewellery are purchased by almost all women in Urban India at some point in their lives.
- Gold acts a hedge against inflation: Since the price of gold remains in the greens for most of the time unlike other asset classes, gold is also purchased by people to act as a hedge against inflation. Its value almost always increases more rapidly than inflation, so it increases the wealth of its owners and helps them counter the effect of inflation on their lives.
- Safe investment: Large quantities of gold are also bought in our country for investment purposes. In fact, it’s considered a very safe investment, thanks to its prices which keep increasing most of the time. It’s also a highly liquid form of investment – it can be sold and converted into cash at anytime.
- Sentimental value: In India gold also has a lot of sentimental value. Due to its link with various religious and ceremonial events it earns a lot of emotional value during its lifespan, which makes people purchase even more of it and hold on to the gold that they already have.
- Gifting: Gold has been used as a gift item since a long time. Gold sets are often gifted to the brides in their wedding, and other not so heavy jewellery items are gifted on smaller ceremonial functions too. And since Gold costs a lot, reciprocity is an unsaid and unwritten rule when it comes to its gifting. If someone receives a gold item in gift at some point from some person, he/she also tries to return the favor with another gold gift at some point. This gifting cycle accounts for a lot of gold sold in our country.
- Religious Importance: Gold also has a lot of religious significance for Indian people. It’s considered auspicious to purchase gold on Dhanteras, Dussehra, Diwali, Akshaya Tritiya, Durga Pooja, Onam, Pongal and many other Hindu festivals. Heavy donations of gold are also made to the temples in our country.
- Symbol of Wealth and Status: Thanks to its high price, gold is considered a status symbol around the world, and India is no different. In fact, in India this perceived value of gold as a status symbol is much more than that in other countries. So it’s not a surprise that in our country people often purchase gold only because it’s a status symbol.
So these are the 7 reasons why Indians love gold and why gold has so much significance in India. Do you know any others? Share them in the comments then and let the world know!