India is the largest source of gold demand in China. Gold jewelry occupy an important place in the culture in India.
Gold deposits in India are insufficient to meet his request. India is importing gold and provides in particular with its neighbor, South Africa, countries with the richest deposits in the world.
Gold in culture and religion in India.
In India, gold is one of social and religious customs.
- Superstition (Gold healing power). Ayurvedic medicine (South India, Kerala) recommends gold dust and gold-based pills to treat certain ailments.
- The strength of the material. The gold does not tarnish and corrosion resistant to the acid.
- For Indian, gold can increase its share capital. The jewelry we wear are an outward sign of social status. Each weddings, Indian women wear gold jewelry. More gold jewelry are numerous, the better social status. It’s a way to show wealth.
- The role of gold in the marriages. Gold is synonymous with prosperity and good omen. At a wedding, the bride should be literally covered from head to toe. It was on this occasion that a woman begins its capital accumulation or.`
- To ingratiate Lakshmi, we offer gold coins bear the profile of the wife of Vishnu, the Goddess of wealth and prosperity.
Gold, an insurance savings in India.
The density of pawnbrokers, flexibility of system operation (open 7 days 7, almost 24/24) and tariffs, among the cheapest in the informal capital market make the pawn a popular facility in India.
Individuals can deposit their pledge jewelry and get a loan of about 60-70% of the value of the deposited object. The high density of pawnbrokers provides liquidity. When you walk in the streets of Indian cities, frequently encountered this kind of establishment (pawnshop), outside the banking system.
Since any small, Indian women have the habit of going to the pawnbroker to deposit their gold jewelry. Gold give them some economic independence vis-à-vis their husbands. This gold is their personal property, it accumulates and transmit it to their children to put them. It is a crucial transmission means, beyond the control of men.
Some banks also offer loans which can amount to 90% of the value deposited in gold.
World Gold Council’s studies show that the difference between gold jewelry and investment gold does not exist in India. Many Indians consider gold jewelry as an investment rather than a fashion accessory. For a majority, gold as jewelry is associated with financial security.
« Over two-thirds of the demand for gold jewelry comes from the rural population, where the affinity for the precious metal in this form are due to practical considerations. The appeal of the precious metal remains strong in India, despite a devaluation of the rupee by 400% during the last decade «
Although the government does not push its citizens to buy gold, the Reserve Bank of India must hold a portion of its assets in gold. And with nearly 600 tonnes of gold, the country is among the major players in the gold in the emerging countries (in addition to 18,000 tonnes of gold owned by the citizens). India will remain and will play an important role in the gold market in the future.
Gold jewels in India.
In India, gold jewelery is proposed at 22 carats. This price difference is due to the low cost of labor. It is also possible to get jewelry 18K if so requested.
The price of gold jewelry is 2-3 times lower than in France.
All Indian cities are full of jewelery and design of Indian jewelry is very different from our European standards.
The existence of a system of « punch » gives a relative guarantee the quality of gold. There are a number of « big houses » of jewelry that « punch » their production and ensure the purchase of jewelry from their workshops. Pawnbrokers know they can always sell the jewels pledged to these « houses ».
Finally, here is a story size:
Indian housewives hold more than 11% of the world’s gold. In total, they carry more gold than they contain the coffers of the United States, Switzerland and Germany combined.
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