DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Gold Demand in India to Drop as Buyers Hoard Cash

**DuePew** · 07-16-2012, 07:27 PM

This is puzzling indeed. Even with the recent spike in agricultural prices, the GKX is still off its 2011 highs.

You know, I think I understand why. Gold buying in India, is for different reasons. We tend to buy gold to protect against currency devaluations, economic instability, wreckless gov spending, etc. I remember reading how in India, people have a true passion for gold for it's symbol of status. Any upstanding person must own gold. It's cherished and given as gifts at weddings, gold gets handed down through the generations. Folks seem to value themselves more if they own gold. People value each other based upon gold as well, it's sought after for different reasons. It's a cultural thing there, the importance of gold.

So, an in economic slowdown, it would make sense why people are not buying as much. They are focused less on the pleasures in life, and more on survival needs.

07-16-2012, 07:27 PM	#4
DuePew Join Date Oct 2005 Posts 634 Senior Member	This is puzzling indeed. Even with the recent spike in agricultural prices, the GKX is still off its 2011 highs. You know, I think I understand why. Gold buying in India, is for different reasons. We tend to buy gold to protect against currency devaluations, economic instability, wreckless gov spending, etc. I remember reading how in India, people have a true passion for gold for it's symbol of status. Any upstanding person must own gold. It's cherished and given as gifts at weddings, gold gets handed down through the generations. Folks seem to value themselves more if they own gold. People value each other based upon gold as well, it's sought after for different reasons. It's a cultural thing there, the importance of gold. So, an in economic slowdown, it would make sense why people are not buying as much. They are focused less on the pleasures in life, and more on survival needs.
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