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Why Indians are So Obsessed With Gold?

Gold has an immense value and an irreplaceable space in Indian Society and the Indian economy. Gold has its glory among any asset the economy depends on. From ancient to modern-day, there has been a high demand for Gold, especially in Indian Society. Gold import for the Indian economy and Gold obsession for the Indian Society has always been the most secure structure in India.

Significance of Gold

Gold is considered financial security in a time of financial crisis.

Consequences Gold has been recognized as a precious metal in historical times. The religious books also emphasize the involvement of Gold during any Yajna or Pooja in Hindu festivals, rituals or marriages.

Gold is the most expensive precious metal in the world. The largest reserves of Gold in Australia. Rajasthan, Karnataka, West Bengal, Andhra Pradesh, and Jharkhand are in India. But the maximum amount of Gold is imported from the countries like Switzerland, UAE, South Africa and Guinea. India is the second-largest importer of Gold, which may harm the Indian rupee and the Indian economy. 

Gold plays an important role in Indian Society from the birth of a daughter till her marriage to the Yajna; till the rituals, Gold is the priority precious metal.

Importance of Gold with the aspect of Indian Society 

In an aspect of Indian Society, the amount of Gold symbolizes the social status and social glory of the family in the Society. If an individual has more Gold, the person will get a lot of respect in Society.

Gold is recognized as the most stable and affordable commodity.

Gold investment is considered a good option in Indian households rather than cash. 

With its high value, Gold is determined as a saviour for a family’s financial needs. The pawnshop‘s availability makes it easy to convert Gold to cash, with a deal of returning cash and getting back their Gold. This practice is the most widespread technique used by Indian Society during the financial crisis.

Gold is a widely accepted commodity that will never change its value but gives a social and financial assurance in financial need.

Facts

According to research, 60% of Indian women have Gold, the highest of any country’s women owning their personal property.

Gold plays a very important role in the development of the economy, for which many gold finance companies like Muthoot FinanceIIFL, and Manapuram finance provide loans in exchange for Gold. 

Consequences of Gold in Indian Society

Gold is recognized as financial security but also brings a lot of debt. In marriages and festivals like Dussehra, Dhanteras claims the significant role of Gold in the auspicious day, which makes people buy at least a small amount of Gold. The dealers and jewellery shops also provide huge discounts on a significant day to gain maximum profit from maximum sales. 

Indian Society invests in buying Gold more than its financial capability and ends up trapped in a debt trap with many loans and their interests.

Way Forward

There is a need for a strict change in the gold import habit of the country. There is a need to reduce import demand to reduce the bills of billions of dollars and increase the country’s fiscal health.

The current Indian Society should change its viewpoint of not considering Gold as a symbol of social prestige and status.

Indian Society should understand that Gold only can never define social status. Society should reduce the demand for Gold so that amount of money invested in importing Gold by the government Will be invested in the development of education, infrastructure and health sector, which are currently the priority sector of the country.

About the author

Shipra Sharma

Shipra has done his graduation in Mass Communication and her immense love for literature pushes him to be a great writer. She dedicates her time in improving his vocabulary and writing skills. Before Fox Activity, she has worked as an associate author in esteemed newspapers. Contact her at shipra@youngindiaface.in