http://www.business-standard.com/newsimgfiles/2011/april/01042011/040111_16.jpg Very interesting Graph. Check it out!
India already is the largest consumer of Gold. China is right up there I believe. Most of India's consumption is in Jewelry and not quite just for investing.
Yeah, the main target in gold investment in India is to make jewelry and not to sell it when prices are too high or even too too high.
Are China's purchases simply for investment purposes or do they have other uses too? And if India is all about the jewelry, do they export this jewelry or does most of it stay in the country? If it stays in the country, they will still be just as prepared as one would expect!
Most of the gold in India goes to the jewelry market, but an increasing share is currently going in to Gold ETFs, Bullion coins and Gold bars. To tell the truth, many of the Indians regard gold jewelry as a form of investment, even though the markup is quite high.
It is true because India is a very populated country and the people of India like gold and they also purchase gold on festivals and the marrige occassion's in large quantity.
That is right. Most of the gold used in India goes towards the jewelry sector. But there is a growing demand for gold towards investment purposes as well. Sales of gold coins and bars has been increasing there for the last 2-3 years.
I recently saw a story covering gold in India and the rising demand. Most gold sold in India is in fact in jewelry, however the majority of Indians in the story stated that they were purchasing in that form for multiple reasons. The common trend was investments that also had a traditionally functional use for jewelry that could also be passed to children without getting taxed as money would.
the demand for gold in India would be driven by rapid GDP growth, urbanisation and rise in income and savings levels of the consumer.
