Gold Demand in India, and the Link to Religious Festivals

Gold is the fundamental pillar of the internationalthroughout the eras. It may also be noted that the
monetary system as a generator of currency, is veryHindu god Brahma is referred to as Hiranyagarbha,
essential in the reserves of a developed nation. It haswhich means born of gold as he is said to be born
been seen that since three thousand B.C., gold turnedfrom the cosmic egg of gold. The gods and
into an acknowledged representation of prosperity,goddesses in Hindu mythology are thought to be
wealth, and power to many kings, and princes all overhaving a golden outlook.
the world. An additional thing that is very striking aboutA few days in Hindu calendars are thought to be
gold is the fact that it is so durable.fortunate if gold is bought in those particular days.
The strong rise of in the value of the Rupee and risingThese days are Dhanteras, and occasions like
consumer spending have raised the gold demand inDassera. Hindus buy gold in large quantities on religious
India by as much as seventy two per cent in the firstfestivals like Onam, Pongal, Navratri, and Durga puja.
half of the year. A report from the World Gold CouncilGold is also a symbolic representation of the Hindu
says that the demand for gold in India reached anGoddess Lakshmi and is considered highly auspicious.
all-time high of three hundred and seventeen tons inGold is bought and presented on festivals like
the second quarter of 2007. Traders predict that if theDhanteras and Akshaya Tritiya. There is a popular
current demand continues, the full-year consumption ofsaying that there are more festivals in India than days
India can rise by as much as thirty per cent per yearin a year! Indians celebrate a number of religious
to nine hundred tones.festivals each year, in which buying and gifting gold is
As compared to the whole country, gold demand intaken as a ritual. There are some principal festivals of
Mumbai (India) has witnessed a drastic fall at hundredHindus that are celebrated all over the country with
kilograms per day from one ton in August due toequal favour as Diwali, Raksha Bandhan, Ganesh
higher prices, and a lack of buying interest. PriceChaturthi, and Holi.
sensitivity of Indian market is widely known. DemandThe importance of gold can be understood in the
will pick up only when prices come down to a level ofsaying; 'all that glitters is not gold'. India is a country
Rupees 12, 200 per 10 grams. Import has beenwhere people buy gold throughout the year. These
affected due to the decrease in demand.people also offer gold to their idols in temples. Various
Gold jewelers in India are offering discounts to attracttemples are also looted, as they are abundant in
buyers as sales slowed to a trickle despiteprecious gold jeweleries. Cases of idol theft have also
approaching Hindu festivals in the largest consumer ofbeen reported several times because these idols were
bullion in India.made up of gold. Gold has great value, as it is
Indians are famous for their love of gold. Along withsomething, which can be passed down from one
the affirmative nature of this fact, it cannot also begeneration to the other as ancestral property.
denied that gold has been a demand-high commodity