Secret! Why do Indians have a soft spot for gold?
As everyone knows, Indians are particularly keen on buying gold. Everyone often watches the news that big Indians are buying gold madly. Especially in India, the demand for gold is strong. It is understood that India consumes a lot of gold every year. Today, Xiaobian reveals the secrets for everyone. What is the reason why Indians love gold.
First, Indians use gold as a safe haven for investment, and they have the role of hedging investment as asset allocation.
Surprisingly, according to the Indian Express, the demand for gold in rural India is close to two-thirds of the country's total demand. It turns out that in rural areas with 70% of the country's population, farmers prefer to use their savings to buy gold because of the inconvenience of banking services in rural areas.
Second, India’s enthusiasm for gold comes from culture and religious beliefs.
India is one of the countries most affected by religion in the world, and its belief in Hinduism accounts for about 80% of the total population. Gold represents wealth and auspiciousness in Hindu faith. The god Lakshmi, who is revered as the god of wealth, fertility and prosperity, is the most sought after.
She is portrayed as a beautiful gold-decorated woman wearing gold-rimmed red dress and constantly flowing gold from her hands. Legend has it that people who believe in her will get wealth. Indians believe that gold is the metal that can bring good luck, and they like to use gold as a gift or decoration during religious holidays.
Third, gold has value and is a good investment.
Gold is very important for people who are often affected by famine. Every year, hundreds of people in India die from floods and millions of people are displaced. If you turn your savings into gold, you can always flee with their wealth, and gold is easy to cash out.
Fourth, gold is a status symbol, and gold is used in wedding festivals to represent good luck and happiness.
It is said that the Indian bride's wedding with 24K gold represents good luck and happiness. In India, it has become a practice and tradition for parents to start depositing gold for her future marriage from the moment the girl is born. The bride's parents hope to use these to ensure that she still has financial security after she arrives at the husband's home, and at least can enjoy the standard of living comparable to her childhood.
As a lifelong investment, many Indian women keep buying gold fortunately to pass on to their daughter or granddaughter.
However, as a big gold consumer and storage country, the Indian government has an unusual headache. On the one hand, the annual trade deficit is severely lacking in various construction funds; on the other hand, a large number of gold is idle and cannot play any role.
As we all know, gold has a safe-haven property and is universal in the world. It is recommended that you configure a certain amount of gold according to your own economic situation when you configure assets.
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