Demand Of Gold In India And Connection To Religious Festivals

A major pillar of the international monetary system as a generator of currency, gold is necessary in reserves of a developed nation. It has been observed that since three thousand B.C., gold has evolved into a regarded depiction of success, wealth, and power to many kings, and princes on a worldly basis. The fact that it is so durable is also a very striking thing about gold.

A rise in the Rupee value, and increasing consumer spending have raised the demand for gold in India by as much as seventy two per cent during the first half of the year. A World Gold Council report says that the demand for gold in India peaked at three hundred and seventeen tonnes in the second quarter of the year, 2007. According to predictions made by traders, if the current demand stays steady, the full-year consumption of India can go higher by as much as thirty per cent per year to nine hundred tonnes.

When compared to the entire country, a big fall at hundred kilograms per day from one tonne in August, in gold demand in Mumbai (India) has been observed, because of increased prices, and less interest in buying. Price sensitivity of the Indian market is a well-known factor. When prices come down to a level of Rupees 12, 200 per 10 grams, demand will increase. There has been an impact on import due to the decrease in demand.

Indian gold jewellers are offering discounts that would appeal to buyers, as sales slowed down, in spite of the upcoming Hindu festivals in the largest consumer of bullion in India.

The love of gold of Indians is well known, and gold has been a demand-high commodity throughout the eras. The fact that the Hindu god Brahma is referred to as Hiranyagarbha, which means born of gold, as he is said to be born from the cosmic gold egg, is also worth noting. The gods and goddesses according to Hindu mythology are regarded as possessing a golden outlook.

A few days in Hindu calendars are thought to be fortunate if gold is bought in those particular days. These days are Dhanteras, and occasions like Dassera. Hindus buy gold in large quantities on religious festivals like Onam, Pongal, Navratri, and Durga puja.

Gold is a symbolic portrayal of the Hindu Goddess Lakshmi as well, and is regarded as something highly auspicious. It is bought and is presented on festivals such as Dhanteras, and Akshaya Tritiya. A famous phrase enunciates that there are more festivals in India than days in a year! Indians commemorate numerous religious festivals every year, in which buying, and gifting gold is considered ritualistic. Diwali, Raksha Bandhan, Ganesh Chaturthi, and Holi are some of the main festivals that are celebrated all over the country with the same amount of zeal.

The importance of gold can be understood in the saying; 'all that glitters is not gold'. India is a country where people buy gold throughout the year. These people also offer gold to their idols in temples. Various temples are also looted, as they are abundant in precious gold jewelleries. Cases of idol theft have also been reported several times, because these idols were made up of gold. Gold has great value, as it is something, which can be passed down from one generation to another as ancestral property.

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