The Secret Ingredient to an Indian Wedding
October 17, 2013
Something old, something new, something borrowed, something blue. Perhaps you’ve heard this old English saying about what items a bride must wear to have good luck on her wedding day. For brides in India however, not a single thing on that list would ensure a spectacular day. Instead an Indian bride desires one thing—gold.
At U.S. Global Investors we often reference the Love Trade and the Fear Trade when discussing gold. What’s important here is the Love Trade, characterized by the purchase of gold for festivals and holidays, and in the case of India, for weddings. Indians love gold, evident in the demand of the precious metal during wedding season. In fact, about half of the gold that Indians buy each year is for weddings.
As you’ll find out in our latest Shareholder Report, a luxury good such as gold is not uncommon to be gifted at Indian weddings, even with the recent regulations to slow imports of the valuable metal into the country. According to a recent story on Mineweb, India’s lust for gold simply cannot be dimmed by government clampdowns. “Heavy gold jewelry pieces from Italy, Switzerland, Dubai and Thailand have flooded the market, just in time for the festive season,” says Mineweb.
We believe the appeal for gold will continue to hold strong in the country. The Shareholder Report gives an in-depth look at Indian gold buying and explores other traditional gifts given at an Indian wedding.
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