Kotak Mahindra Bank
Significance of Gold: People buy gold for a variety of reasons such as for its auspicious sentiment; as an investment (Gold continues to command long term value, a tag for being a safe haven); hedge against inflation; asset allocation, etc. Gold also carries a high perceived value and a high emotional quotient. It reinforces closeness of relationships. Gold coins in smaller denominations are also considered apt for Corporate gifting and rewards for contests or for commemorative giveaways.
The Indian Consumer’s sentiment towards Gold: Many people think that Indians are gold crazy. Though this statement cannot be completely negative, the truth is that Gold has always had a special significance for all ages. The old adage - all that glitters is not gold, also in a way underlines the importance accorded to Gold. Gold lends itself as a commemorative medium to various engagements like golden anniversaries, golden jubilee, gold medals, gold credit card etc. In India people buy gold anytime and not only during special occasions like weddings, festivals or special events. Gold is also offered to Indian deities. The Indian Hindu calendar even has auspicious days to buy gold like Dhanteras and Dassera. Gold is also bought on festivals like Onam, Pongal and Durga Puja.
Though gold has several applications or uses the main reasons why Indians take to gold are:
The importance of Akshaya Tritya: According to the Hindu Calendar, Akshaya Tritiya is a very auspicious occasion for new beginnings. During this period, people enter into new business ventures, make travel plans and also celebrate weddings. Buying gold is also a popular activity, as it is the symbol of wealth and prosperity. Gold bars, coins and gold jewellery bought and worn on Akshaya Tritiya signify never diminishing good fortune. During the period both banks and jewellers promote gold sales aggressively, offering the best prices and discounts. Customer demand during Akshaya Tritiya surges due to a belief that gold purchases go a long way in securing the future.
Disclaimer: The views expressed in the article are personal and do not reflect the views of Kotak Mahindra Bank Ltd.