Gold is a recognized symbol of prosperity, wealth and power. Since the reign of all ancient Egyptians, Greeks and Romans to modern times, the yellow metal impressed by his magical power of beauty and wealth. It has become a standard monetary system, as well as the essential element in the manufacture of jewelry.
Many external and domestic factors determine the demand for gold in a given country. Annual demand is based on the price of gold, issued by the international market and the festival and the period of marriage in the country. As a normal trend is expected to increase during times of festivals and marriages.
In countries like India, gold is considered the symbol of a determinant of wealth and prosperity. The festivals such as Diwali, Dussera and Gudi Padva, are reserved for Akshaya Tritiya buying gold and other valuable assets. Especially, Akshaya Tritiya is specifically related to the purchase of gold on the basis of the belief that wealth purchased in this festival lasts forever. India has been considered as the largest consumer of gold. Consumption is about 800 tons, which represents 20 percent of the total gold consumption in the world. A much of it, nearly 600 tonnes goes into jewelry making.
Gold demand admirable, it brings India among the largest in the world bullion markets. Demand of gold in India in 2009 was subject to changes in different parts of the year. According to the report published by the World Gold Council, gold demand in India in first four months of the year was the lowest of his demand in the last 20 years.
The exceptional first quarter was the perfect storm, which caused demand retail prices turn negative (-17 tons) in India. The demand was reduced by 83 percent to 17.7 tons from the previous year.
Even during February and March, gold demand dropped to zero level. The unusual decrease in the consumption of gold was due to high gold prices in the international market. In February, Mumbai witnessed the largest market gold price 15 780 rupees per 10 grams. Occurred due to the decrease in the value of the rupee against the dollar. Moreover, recession or slowdown in the national economy has also contributed to the decline.
After a period of less than four months, demand Gold is expected to increase over the next four months due to events such as Akshay Tritiya and the summer wedding. With the small but constant intake investors, the demand for gold managed to stabilize in the fourth quarter.
The demand for gold from India increased by 84% during the last quarter 2009. This increase was comparable to the increase in the last four months of 2007. The increase was 107 percent more in demand for jewelry. In this quarter, consumers in India spent the highest on the money U.S. $ 1,745,000,000 compared to $ 1,422,000,000, an increase of 23%. This increased demand was seen due to the fall in the price levels of gold in October, more than $ US900/oz to $ US712/ounce. Fortunately, this was during the festival Diwali, which is a key opportunity to buy gold in India.
Increased demand in some way the annual demand for gold. But during all of 2009, the India managed to import 32 tons, much less as compared to the year 2008, the value of 400 tonnes.
Learn how to buy gold in the times of recession for future investment.
The Gold and Silver spot price declines.
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