PixelParrot2
Well-known member
India's love affair with gold shows no signs of waning, even as soaring prices have sparked a debate over whether Diwali shoppers are willing to give up on the precious metal.
The vibrant Lajpat Nagar neighbourhood in Delhi's capital city is teeming with crowds ahead of the Hindu festival of Diwali, with jewellery shops staying open late into the night to capitalize on the festive season. Shoppers are drawn by the glittering lights and the promise of wealth and good luck that comes with buying gold and silver coins, bars, and jewellery.
While soaring prices have dented demand for jewellery in some parts of the world, Indians are still willing to splurge on gold, albeit in smaller quantities. Jewelers are responding to this trend by offering more affordable options, such as thinner but elaborately designed pieces that look big but contain less gold.
One clear trend is emerging - more customers are buying gold and silver for investment rather than jewellery. The World Gold Council reports a rise in demand for bullion, with Indians snapping up bars and coins that are believed to bring wealth and luck.
The Reserve Bank of India has also been stocking up on gold, boosting the country's central bank reserves and diversifying its foreign exchange holdings. This move is likely to have a positive impact on the wealth effect on Indian households, given the uptrend in gold prices.
Experts say that strong cultural affinity for physical gold means the appetite for the noble metal is unlikely to be dented in the long term, despite the short-term moderation. The sheer size of India's gold holdings - equivalent to 88.8% of the country's GDP - suggests that many Indians have already benefited from high gold prices and are likely to continue buying gold as a form of wealth storage.
The festive season may have taken some glitter off the precious metal, but it remains a staple of Indian culture and a key driver of economic growth.
The vibrant Lajpat Nagar neighbourhood in Delhi's capital city is teeming with crowds ahead of the Hindu festival of Diwali, with jewellery shops staying open late into the night to capitalize on the festive season. Shoppers are drawn by the glittering lights and the promise of wealth and good luck that comes with buying gold and silver coins, bars, and jewellery.
While soaring prices have dented demand for jewellery in some parts of the world, Indians are still willing to splurge on gold, albeit in smaller quantities. Jewelers are responding to this trend by offering more affordable options, such as thinner but elaborately designed pieces that look big but contain less gold.
One clear trend is emerging - more customers are buying gold and silver for investment rather than jewellery. The World Gold Council reports a rise in demand for bullion, with Indians snapping up bars and coins that are believed to bring wealth and luck.
The Reserve Bank of India has also been stocking up on gold, boosting the country's central bank reserves and diversifying its foreign exchange holdings. This move is likely to have a positive impact on the wealth effect on Indian households, given the uptrend in gold prices.
Experts say that strong cultural affinity for physical gold means the appetite for the noble metal is unlikely to be dented in the long term, despite the short-term moderation. The sheer size of India's gold holdings - equivalent to 88.8% of the country's GDP - suggests that many Indians have already benefited from high gold prices and are likely to continue buying gold as a form of wealth storage.
The festive season may have taken some glitter off the precious metal, but it remains a staple of Indian culture and a key driver of economic growth.
I think people in India just really love the feeling of owning something valuable and shiny 
especially during Diwali when they're already looking to celebrate and treat themselves to something special 
. And with all the jewellery shops staying open late, it's like a treasure hunt for everyone involved! 
Plus, buying gold is seen as a way to attract good luck and prosperity, so that's definitely part of the appeal too 
. I'm not surprised they're sticking to their love for gold even when prices are high 
- I mean, who doesn't love a good bargain? 
, and how she loves to knock over those fancy gold-painted vases I got for her birthday 
... anyway, back to India's love affair with gold... have you guys ever noticed how weird it is that we spend so much on gold, but some of us can barely afford to put food on the table? 
... maybe it's because it's like a big ol' symbol of prosperity and good luck 
.
even with the price hike, people are still willing to splurge on it - talk about being true to your values! 
and can we talk about how creative jewelers are being by offering more affordable options? thinner but still super sparkly pieces are everything! 
i'm not surprised they're seeing an increase in demand for investment gold, people want that security blanket 
it's like a sea of gold and glory!!! 
The fact that experts say Indians are unlikely to give up on gold in the long term is reassuring, but also a bit concerning. I mean, what if we're just perpetuating a cycle of over-investment? Shouldn't we be focusing on more sustainable financial goals?
The festive season may have toned down its sparkle, but gold is still shining bright – and I think we're just seeing the beginning of this trend 
The Reserve Bank of India stocking up on gold is also a smart move 
. I mean, 88.8% of India's GDP is invested in gold - that's like a whole country's worth of wealth 
And I love that jewelers are trying to cater to this demand by making more affordable options, but at the same time Indians are still willing to splurge on it. The data from the World Gold Council shows a huge rise in demand for bullion and coins - 15% growth in 2024 alone! 
:
. I think India's love affair with gold will only continue to grow, despite the price fluctuations 
. Like, where people can save a little each month and buy a small piece of gold when they're ready for retirement. That way, everyone can enjoy the benefits of gold without breaking the bank 