Many people are being stereotypical about India’s gold market. Due to cultural reasons, popular beliefs signify that the Indian gold market is always, though not continually, surging up. That being said, the reality contradicts the stereotype.
Likewise, in other markets, the market for this precious metal in India is also fluctuating. It, in addition, is inevitable that gold, despite possessing grave significance in people’s beliefs, also has its ups and downs in the Indian market.
The most recent instances are this year’s Diwali and Dussehra festivals that had poor gold sales. In contrast to the last and previous years, the festivals, in which usually people tend to buy more gold, fail to meet the expectation.
Jewelers’ efforts to lower the price were not enough to lift up the buy rates. This year’s Dhanteras-the first day marking the beginning of Diwali-did not indicate any significant escalation in gold transactions in India. The buy and sell rates have been tepid since July.
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Gold in India Market and Its Significance
In India, gold has been a quintessential commodity for a long time ago. It, additionally, has become an interrelated element in Indian cultures.
Mostly, Indian gold consumers use metal for ornamental purposes. Also, the ornaments are closely related to wedding gifts and a storehouse value in its cultural and traditional customs.
Moreover, the World Gold Council also nominated India as this year’s second-biggest gold consumer in the world, which consumes roughly 849 metric tons of gold per year. However, due to its minuscule gold production, the country mostly imports all of its gold to meet the demands of the market.
Due to these aforementioned factors, it is justifiable why people tend to associate Indians with stable and never fluctuating gold transactions. Meanwhile, in reality, it is not entirely true.
Many factors influence the gold trade rates in India. For example, this September, rural distress, higher prices, and a hike in India’s import tax became the weakening factors.
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