WHY YOU SHOULD INVEST YOUR GOLD IN INDIA
Are you a trader who deals in Congo gold or white gold? Have you recently had thoughts of investing that high quality 24 Karat gold in India? Think again because India is one of the biggest gold consumer in the whole world, next to china. The key area of gold demand in India is gold jewellery and ornaments.
future gold market
In 2010 for instance, Gold trade accounted for 32% India’s global total contribution. Now that the futures market has been introduced together with mutual funds and gold backed ETFs, interest in trading precious metals in the country are expected to grow at a brisk pace.
India, being the world’s gold consumer of golden jewellery calls for more investment in the area for those seeking to expand their wealth. The high inflation rates in the country, the growing GDP and the general improvement and growth in the standards of living are motivational factors that should lure you into gold trade in India.
Global gold prices have continuously been steered by India and the outlook on gold has been brightened by a fresh political shift there. With a population of 1.237 billion people, the second largest in the world; there is a gold rush as many aren’t able to get enough hold of the metal. The country ranks second in global gold demand, most especially jewellery, coins and bars.
Gold consumer in festivals
Religious festivals like the Diwali and the wedding seasons in the country tend to drive prices of gold high between September and December. India’s ‘love affair’ with gold still continues unabated with a total demand of 975 tons in 2013 alone although the country had curbed importation of gold.
To therefore satisfy the thirst for gold in India, imported jewellery; whether through the official or unofficial route, from Dubai and other countries is the only way through which the high demand rates will be met. Even if India keeps its curbs on the importation of gold, there will be a significant growth in the grey market and more assortments of duty-free gold jewellery will find their way into the country from Dubai.
The demand range for gold consumer in India in 2014 alone has been estimated at between 900- 1000 tons and this is reason enough why you should invest in Indian gold. With the grey market also flourishing in 2014 as a result of the supply curbs, demand for gold will continuously be strong in the country. Estimates reveal that there might be more than 20 million marriages that will drive the demand for gold. With an improvement and growth in the savings rate, the market will be full of those who can afford gold.