New Delhi might not be the first place that pops into your head when you think of gold – but it’s certainly important. For traditional and cultural reasons, India is the gold market’s biggest customer. Let’s face it, you probably don’t think about gold in India very much, but since the market affects the gold price even here – it’s certainly worth paying attention to. Here’s what’s going on.
Why is gold in India so important?
Gold has been deeply rooted in Indian culture for as long as anybody can remember. In fact, the Hindu myths are full of references to it. Since then, a history of unstable national currencies and political turmoil has meant that Indians more than anybody else continue to appreciate the value of physical, ever reliable, gold.
In fact, the impact is so great that supply and demand in India often affects the gold price right here at home and on the markets around the world.
What’s happening to the gold market in India now?
A few months ago, around India’s biggest annual gold sales period, the market was dominated by headlines about the year’s disappointing sales figures. Apparently, diamonds were stealing gold’s long-held crown as India’s jewellery of choice.
The big news now 2017 is over, however, is that this sales slump has shown promising signs of abating. India’s own Economic Times recently reported sales increases of 15 per cent in India’s rural gold market, suggesting the country’s love affair with gold is far from history.
How does this affect the gold price in the UK?
Against a whole range of other factors that influence the gold price, it would be impossible to quantify any specific effect this is having on the price of your gold coins or gold bullion. Nonetheless, it shows strong signs that, as many investors have predicted, the gold market remains strong and reliable going into 2018.
Does this mean that the price of your gold is suddenly about to spike? Probably not. But it likely does mean that gold is the same trustworthy and dependable asset in 2018 that it always has been.
If gold is the asset for you, then now’s the time to find out more about our gold coins and gold bullion investment opportunities.
