Gold is the universal language of wealth, a currency that every country in the world understands. Although there is an abundance of other valuable commodities, the precious yellow metal is the one that everyone ultimately returns to.
Often described as a safe haven, gold is purchased for a myriad of reasons. Investment, status and jewellery are three of the most popular, and help to drive demand for gold even during the most fragile economic times.
Although there is an appetite for gold all around the world, there are some countries where it is especially sought-after. Second only to China, India is one of the biggest consumers of gold, and the current demand is one of the factors in pushing up the price.
Here’s a closer look at why gold is such hot property right now and whether that’s likely to change in the future.
Gold in India
In India, gold has a significant role to play in society, and it’s something that’s not hidden discreetly away. Although gold is also bought for investment purposes, it’s displayed as a status of wealth and given generously as gifts on special occasions.
Indian households like their gold to be visible, and lavish gold jewellery is more common here than in some western nations. This is particularly the case for weddings where guests wear lots of gold jewellery, and extravagant pieces will be exchanged as gifts.
Around three-quarters of the gold sales in India are for jewellery, and research shows that this tends to be driven by rising incomes. For every 1% the GDP rises, the demand for gold increases by 0.9%.
In contrast, the demand for gold bars and pure investment pieces corresponds to short-term drivers. This means that appetite fluctuates according to inflation and the price of gold more closely than GDP or government levies.
Overall, the demand for gold in India is continuing to rocket, with no sign of it abating. In 2020 gold imports increased by 167%, while in 2021, they doubled.
The Future for Gold
India has undoubtedly been one of the driving factors in the increase in the price of gold, but there are geopolitical influences too.
Gold is considered to be a safe haven investment, and in times of turmoil, it’s a popular way to protect wealth. With the Russian invasion of Ukraine, the price of many commodities has been negatively affected. This has sent investors flocking to gold, boosting its price in the short term.
Inevitably when peace returns to the region, there will be a temporary drop in the price of gold as investors return to other vehicles. However, gold has steadily grown in value over the last century, and there is every expectation that it will continue to do so.
If you can’t quite afford some gold nuggets of your own, you could indulge yourself in the next best thing –Gold Bar Roulette. An online casino game that’s available to play at most reputable operators, you won’t win any actual gold bars, but you could win a hefty cash prize while you’re playing in what appears to be a gold vault. As a live dealer game, it offers a fun and interactive experience, and if you’re lucky, you could even end up with enough cash to start thinking about a real life gold investment.
Follow our WhatsApp channel
