India's love for gold! Gold buying trends in the country
The love for gold in India is not surprising. The country's love affair with the precious metal is as old as its culture.
India is one of the largest markets for gold. From celebrating marriages to festivals to childbirths, gold plays an important role.
But do you know how India buys gold and who are the biggest buyers? Here's more on the gold-buying trends!
How and when does India buy gold?
India's gold demand accounts for one-fifth of global demand
The demand for gold in India has always been high, irrespective of the prices, due to various social, cultural, and economic reasons.
World Gold Council says the country accounts for 10% of the world's total gold stock.
A previous report claimed that India's gold demand accounted for over a fifth of the global demand for the yellow metal in the first-quarter of 2017.
How much gold does India hold?
According to a Jan'17 report, Indians are the largest hoarders of gold in the world. Indian households together hold $800billion worth 23,000-24,000 tons of the precious metal.
Another report by the World Gold Council says that three-fourths of the population in India own the precious metal in some form or the other, while only three out of five people hold gold in the US.
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Weddings are the biggest occasions for buying gold
Gold prices (10gm) in India are on the rise led by jewelers' increased buying in the wedding season.
The price surged to Rs. 29,665 in the bullion market (on 14 December) after nearly 4,00,000 local jewelers bought the yellow metal to cater to the massive demand in this season.
In fact, weddings account for one-fourth of gold purchases, followed by birthdays, and festivals.
Who are the biggest buyers of gold in India?
World Gold Council says people in rural areas in India account for nearly 65% of the country's total gold stock.
Rural people reportedly consider gold as the best investment compared to those in urban areas.
Most youngsters in urban areas prefer to spend on technology products and fashion rather than gold. Only 33% of youngsters in the 18-33 age group spend on gold.
Which type of jewelry dominates the market?
Gold ornaments are the most preferred form of jewelry in the country. The market is dominated by bridal jewelry, which has a 50-55% market share. Meanwhile, daily wear jewelry has 35-40% share while fashion jewelry has 5-10% market share.
Among the types of jewelry items sold, bangles & chains have 30-40% share, necklaces have 15-20% share, and earrings & finger-rings have 5-15% share.
This state tops gold spending list in India
Kerala tops India's gold spending rankings. Its per capita spending is six times more than Goa's, which was ranked second.
In fact, rural Kerala's per capita gold spending is much higher than the combined per capita spending of the top six states.
An average Keralite bride has 320gms of gold ornaments on her, almost twice compared to an average Gujarati bride with 180gms.