Record gold prices aren't scaring Indians away

ALL THAT GLITTERS: Traders say with the high prices, demand for gold this winter has lessened by 20 pc.

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New Delhi: When Suzie Gupta got married, she did what most Indian brides do — load up on the gold. The yellow metal seems to be prized more in India than anywhere else in the world.

A potential gold-buyer, Ramesh Kuckreja says, "Gold is essential. Gold jewelry is given as a gift and received as a gift also."

Every year for the past three years, Indian consumers have bought about 700 tons of gold — that's double the amount sold in China and the US combined, making India the world's biggest gold consumer.

A student, Gurjeet Kaur says, "In India, it's a tradition to buy gold and it's traditional to wear gold as well. It is important in each individual's life."

While she is just 14-years-old and shopping with family for a cousin's wedding, she says that buying gold is almost a family affair in India.

Meanwhile, the bride-to-be, Gurjeet's cousin Amanpreet is carefully choosing what will become her wedding trousseau.

Says Amanpreet, "Actually bangles, earrings, chains, rings — it's all exciting."

Gold jewelry is the traditional investment. One can wear it, hand it down through generations and if money is ever tight, one can even sell it. One can also go into debt buying it.

Indian families insist buying gold for a special occasion is a must. The question is: Are families buying as much gold as they used to when prices were lower?

Meanwhile, Amanpreet's future uncle-in-law, Raga Bir Singh, says prices are forcing him onto a budget.

"We do not stop buying. We have to buy gold, but we can reduce the quantity. We can't go beyond budget," says he.

And he's not alone. Traders say with the high prices, demand for gold this winter has slacked off 20 per cent. But it won't last, they predict. When prices stabilise, customers will be back to the jewelry counters, money in hand.