Gold is the fundamental pillar of the international monetary system as a generator of currency, is very essential in the reserves of a developed nation. it has been seen that since three thousand B.C., gold turned into an acknowledged representation of prosperity, wealth, and power to many kings, and princes all over the world. an additional thing that is very striking about gold is the fact that it is so durable.

The strong rise of in the value of the Rupee and rising consumer spending have raised the gold demand in India by as much as seventy two per cent in the first half of the year. A report from the World Gold Council says that the demand for gold in India reached an all-time high of three hundred and seventeen tons in the second quarter of 2007. Traders predict that if the current demand continues, the full-year consumption of India can rise by as much as thirty per cent per year to nine hundred tones.

As compared to the whole country, gold demand in Mumbai (India) has witnessed a drastic fall at hundred kilograms per day from one ton in August due to higher prices, and a lack of buying interest. Price sensitivity of Indian market is widely known. Demand will pick up only when prices come down to a level of Rupees 12, 200 per 10 grams. Import has been affected due to the decrease in demand.

Gold jewelers in India are offering discounts to attract buyers as sales slowed to a trickle despite approaching Hindu festivals in the largest consumer of bullion in India.

Indians are famous for their love of gold. along with the affirmative nature of this fact, it cannot also be denied that gold has been a demand-high commodity throughout the eras. it may also be noted that the Hindu god Brahma is referred to as Hiranyagarbha, which means born of gold as he is said to be born from the cosmic egg of gold. the gods and goddesses in Hindu mythology are thought to be having a golden outlook.

A few days in Hindu calendars are thought to be fortunate if gold is bought in those particular days. These days are Dhanteras, and occasions like Dassera. Hindus buy gold in large quantities on religious festivals like Onam, Pongal, Navratri, and Durga puja.

Gold is also a symbolic representation of the Hindu Goddess Lakshmi and is considered highly auspicious. Gold is bought and presented on festivals like Dhanteras and Akshaya Tritiya. there is a popular saying that there are more festivals in India than days in a year! Indians celebrate a number of religious festivals each year, in which buying and gifting gold is taken as a ritual. there are some principal festivals of Hindus that are celebrated all over the country with equal favour as Diwali, Raksha Bandhan, Ganesh Chaturthi, and Holi.

The importance of gold can be understood in the saying; ‘all that glitters is not gold’. India is a country where people buy gold throughout the year. These people also offer gold to their idols in temples. various temples are also looted, as they are abundant in precious gold jeweleries. Cases of idol theft have also been reported several times because these idols were made up of gold. Gold has great value, as it is something, which can be passed down from one generation to the other as ancestral property.

Gold Demand in India, and the Link to Religious Festivals