Is India’s Obsession With Gold Here To Stay?
India’s enduring love for gold drives massive jewellery demand rooted in culture and tradition. As hallmarking, GST, and regulations rise, organised jewellers steadily gain dominance over fragmented unorganised players.
A glittering love affair!
Indians know and love their gold, always have, always will. The Mahajan padas, the sixteen kingdoms of ancient India from the 6th to 4th centuries BCE, used to trade in minted punch-marked silver coins in 600 BC and India was one of the first countries in the world to transition from barter system to a money-based trade system, along with the Greeks. During 1-1000 AD, India was the world’s largest economy and trade was conducted using gold coins and bars. However, India’s love affair with gold has chiefly centred around jewellery, which is interwoven into the very fabric of its society. Whether it is Raksha Bandhan in north India or Onam in the south, or Akshay Tritiya and Diwali all over the country, people buy gold to mark new beginnings, births, festivals, and weddings. In fact, the World Gold Council estimates that more than 50% of Indian demand for gold is wedding related. Even today, India’s gold stock almost equals the market cap of Apple, the world’s largest company in value terms.
Deep-rooted: India’s obsession with the yellow metal!
As per the World Gold Council, Indian households own 23,000 -24,000 tonnes of gold (valued at >US$…
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