In this article, we focus on India – the largest country in South Asia where gold is of great importance. Indians worship gold since the dawn of time, considering it a symbol of wealth and good fortune.
The state that ranks second in the world in terms of population has a centuries-old tradition of giving gold as a gift. In India, it is customary to give golden items on all holidays and special occasions. Being an exceptional gift, gold is passed on from generation to generation in Indian families.
The value of gold in India
Gold is an integral part of the national culture that fuels the growing demand year after year. Indians buy up to 900 tons of gold annually.
The country has the world's largest stock of gold jewelry and coins estimated at 10 000 tons.
An interesting fact: Indian housewives own 11% of the world's gold reserves, surpassing the reserves of the International Monetary Fund, the United States, Switzerland and Germany.
Sales of gold increase significantly during the wedding season at the end of the year, taking into account that gold serves as a traditional gift for such important occasions.
For an Indian bride, wearing gold jewelry in large quantities indicates the family’s high status in society.
In late October and early November, India celebrates Diwali – a five-day religious festival and the main Hindu celebration when sales of gold jewelry and coins go up.
The growth of the Indian economy stabilizes the gold market
The South Asian state’s economy demonstrates the highest growth rate in the world. According to forecasts of financial experts, the Indian middle class is expected to grow, leading to an increase in the country's demand for gold by 25%. In turn, this will have a stabilizing effect on the global gold market.
IMF specialists forecast an over 7% growth rate of the Indian economy by 2019, assuming it will serve as a supporting factor for the global cost of gold.
A reinforced build-up of gold reserves
In 2018, India has increased its gold reserves by 8,16 tons. The state’s gold reserves reached an all-time high of 572,6 tons of gold, with an estimated worth of over $14 billion.
The government intends to continue the trend. The country’s gold reserve serves as a reliable safety cushion and the best insurance in times of financial crisis.
The development of gold mining industry
The country’s largest and the oldest gold deposit “Kolar” is in Karnataka, a state in the South-West of India, where nearly 800 tons of gold were mined in total.
The country's largest gold mining company produces almost 3 tons of gold annually. The Ministry of Mines has set a mining standard of up to 45 tons of extracted gold per year. In order to increase the production of precious raw materials, the gold mining company intends to attract foreign investors.
Why gold is the future?
More than 1,3 billion people live in India. A developing country ranks second in the world in terms of gold consumption.
Hindus believe that the precious metal serves as a reliable protection against economic instability. Gold protects the owner’s capital against inflation, depreciation and other financial risks. This is the best tool for preservation and accumulation of personal wealth.
This is the reason why the international company Global InterGold works with investment gold for more than eight years. Gold remains the most profitable asset of the 21st century.
It is a stable source of income and a highly liquid asset that can be exchanged for money quickly and effortlessly. We are certain that personal gold savings enhance confidence in the future, bringing peace and prosperity.
The goal of Global InterGold is to improve the quality of life of our clients and create a better world.
The company sets an ambitious task, helping people in different countries of the world achieve prosperity and success.
We develop a business of the future that brings happiness and fulfills dreams.
Gold is a valuable investment in your future and a long-term security for everyone!
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