In the past, buying gold priced around ₹30,000 for 10 grams felt expensive but still manageable for Indian middle class family. Now, with record-high prices, owning the same quantity of it has become unaffordable, particularly for many couples planning to marry. So why is it getting costlier? And what’s the effect on Indians who sees it as more than just an investment.
Why prices are rising so fast?
The biggest reason behind rising prices is uncertainty. Across the world, economies are struggling, inflation is persistently high, and there is an abundance of uncertainty about the future. When people lose confidence in currency and investing, they turn towards gold because it is seen as safe and reliable.
Another reason for rising prices is inflation. As the cost of goods and services increases, the value of currency decreases. In contrast, gold usually retains its value over long periods of time. This makes it attractive for investors and common people alike who wish to preserve their savings/ assets.
Central banks of many countries, including India, are also buying massive amounts of gold as well. When large buyers enter the market, purchase volumes increase, and therefore also increases the price. At the same time, it limits the supply; as gold cannot be produced quickly like paper money.
Gold and Marriage Customs throughout India
In India, gold symbolizes not only a material item, but emotion, family, and security.
- In South India, it is considered an important part of a bride’s wedding attire. Brides often wear heavy gold jewellery as a symbol of prosperity and family status.
- In North India, jewellery of it is gifted to brides as part of “streedhan,” meant to provide financial security.
- In Bengal and Odisha, it is purchased during auspicious occasions such as weddings, as a sign of good fortune.
- In Maharashtra and Gujarat, its coins and ornaments are given as gifts to the bride during wedding ceremonies and on other celebratory occasions.
Families throughout the generations have slowly saved to purchase gold for marriage. Rising prices are now forcing many to stop purchasing jewellery or obtain loans to purchase jewels; therefore, changing age-old tradition.
Is buying gold still safe now?
Traditionally, gold is viewed and has been classified as a secure long-term investment, but as with all investments, the timing of your purchase matters. Buying large quantities of it at historically high prices, can really put strain on household. Experts suggest purchase of gold should be encouraged to buy gradually, with less pressure regarding the upcoming wedding, and based upon individual needs.
It is considered as part of an investment, it should not provide the only avenue of savings but be used in conjunction with other types of savings (i.e. fixed deposit or mutual funds).It is still considered as a valuable commodity for the family unit in India despite fluctuations in price due to fluctuations in global currencies. Today, buying gold requires careful planning, not just tradition.
In simple words, gold is still safe, but smart buying is more important than ever.
