India's Love Affair with Gold
Gold has a special place in the heart of the people of India.
Indeed, gold performs a special and unique role in Indian society: not only is gold purchased for
special occasions, frequently presented in the form of gifts and typically used as a means to secure wealth. Consumption of gold in India is still on the rise today.
Furthermore, India has a long and deep tradition in gold, both as a consumer and as a major producer.
Prized as an object of beauty for adornment and as a medium of secure investment, Indian households are estimated to own some 22,000 tonnes of gold. Circa 600 tonnes of gold is used in the production of India jewellery production every year.
The popularity of gold is the primary driver for production, such that India today is a global leader in the manufacturer of intricate artisan jewelry.
Gold and gold jewelry are bought by the whole spectrum of Indian society, rich and poor, as it confers status on its owners. It is also believed to bring good luck to those who receive it.
Gold’s importance is underpinned by its dual role as adornment and investment.
The significance of gold’s role as adornment has dictated that a large percentage of gold is purchased as jewelry. Meanwhile, the role of gold as an
investment medium in Indian society, has meant gold retains its value over the long term.
Estimates suggest that some 3.5 million people are employed across the various aspects of the gold industry in India.
At the heart of gold jewellery in India is the GJC, the All India Gem and Jewellery Domestic Council.