Hi,
My husband works for a gold mining company and recently at an official meet, a colleague of his asked me "Why Indians are so fond of gold?" From Oct-Dec gold prices are driven by Indian market because of Diwali and weddings (the largest consumer of gold is India). I couldn't answer him, why?? Financial security? Status, dowry system? What's the use when 80% of his life it’s hoarded in bank lockers. They were spell bounded when I told them a middleclass person must be having at least 1/2 kg of it and people with more money may be 2-3 Kg's or 4-5. The expression on their faces was "Are we guys crazy" so much gold and we talk of Indians being poor!
Jona
In olden times , banking system was not there and hence all money to be kept safe was kept as/in gold (remember the old Western movies) . Once banking system came into being , Gold was not used in transactions in daily life . It is not an investment as such and goes up and down with time. You can actually lose money in investing in it.
But we have still not "grown up" from the olden times in India.It is different to buy ornaments of gold to wear but it is certainly not a very good investment as such. Plus Gold stocks can be bought/sold and there is no need to buy actual "metal".
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We will find a way or we will make one
Gold stocks can be bought/sold and there is no need to buy actual "metal".
But you can not display your 'Gold bond' proudly in Marriage and other social gatherings to others to show that you have that much gold and
you are rich!
For that pupose you need actual gold.
As you said we have still not "grown up" from the olden times in India
Location: carl sagan's universe
Posted on: 15-10-07 23:10:14
Kinda looks like the Japanese are driving the price of gold.
see link
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/16/cngold116.xml
and to read it all: http://www.canadiandesi.ca/read.php?TID=18750&page=2
India was rich country (we were the developed country 300-400 years back). Our fame reached all over the world and we had so much of wealth, because of it we were invaded plundered by them (It happened many times from 1000 AC). Our love for gold will remain for ever. If you collect all the gold from everyone in India, I guess India will be richest country in the world.
Quote:
Originally posted by Suba
Gold stocks can be bought/sold and there is no need to buy actual "metal".
But you can not display your 'Gold bond' proudly in Marriage and other social gatherings to others to show that you have that much gold and
you are rich!
For that pupose you need actual gold.
As you said we have still not "grown up" from the olden times in India
Going by your theory:
1. No need even to buy gold stocks - just buy and sell gold futures.
2. No need to buy company stocks - just buy and sell index linked derivatives
3. No need to invest in foreign currecies - just buy and sell currency futures
4. No need to buy fashion clothes - all you need is a maximum of one dress a day for seven days and then wash them on the weekend. And if you can do the laundry during the week - you can live with lesser number of dresses. Why buy more clothes than you actually need?
If going from actual/real thing to artificial things (like jewellary) means growing up.........then god knows what is happening to mankind!
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Chandresh
Advice is free – lessons I charge for!!
Quote:
Originally posted by jonav
Hi,
My husband works for a gold mining company and recently at an official meet, a colleague of his asked me "Why Indians are so fond of gold?" From Oct-Dec gold prices are driven by Indian market because of Diwali and weddings (the largest consumer of gold is India). I couldn't answer him, why?? Financial security? Status, dowry system? What's the use when 80% of his life it’s hoarded in bank lockers. They were spell bounded when I told them a middleclass person must be having at least 1/2 kg of it and people with more money may be 2-3 Kg's or 4-5. The expression on their faces was "Are we guys crazy" so much gold and we talk of Indians being poor!
Jona
A matter of fact - India is the biggest consumer of gold in this world, the second being USA, which consumes less than half of what India consumes.
As far as I recollect, in year 2000 or so, India's consumption was 800 tons per annum while that of USA was 300 odd tons. You can calculate the per capita consumption and be surprised!
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Chandresh
Advice is free – lessons I charge for!!
