Golden weddings in India
We explain why the demand for gold is growing during the wedding season in India.
India is the second largest consumer of gold in the world (after China.) Citizens of India purchase from 800 to 1000 tons of precious metal annually. The greatest demand boosts during the wedding season, since giving the gift of gold to the bride is an ancient cultural tradition of this country.
Indian women increase their personal capital on the day of the wedding. In rich families, the bride receives several kilograms of gold from her relatives and friends. These jewelries belong to the wife only, becoming the insurance of financial well-being. In difficult times, it is the last thing to go.
Many Indian women still get married wearing sarees. The red-colored fabric is sewed with golden threads. On average, up to 300 grams of the precious metal are used per one dress. The making of such dress takes three to four months.
It is customary for the future wife to wear a haar around the neck - a large and heavy bridal necklace. It is inherited from mother to daughter. Also, nath and tikka considered to be important attributes of the wedding dress. The nose ring and hair ornament allowed to be worn by a married woman only.
Experts estimated that Indian housewives store 11% of the world's gold reserves - 18,000 tons of gold. In comparison, this is more than the reserves of the US and the IMF combined.
In 2018, the precious metal trade is expected to be revived in India.
On the 18th of April, the day of Akshaya Tritiya will be celebrated across the country. According to the beliefs of Indians, this is the happiest day of the year that can’t be complete without golden gifts.
Analysts suggest that the import of yellow metal into the country of contrasts will exceed 800 tons.
Then the wedding season comes along, that’s when gold prices predicted to increase.