Gold rate in India including those in other countries has broken historical records. Today the price of gold in India has got an unbelievable boost. This has become possible due to announcement of debt ceiling by USA. It is also being pointed that Federal Reserve has made a promise to reduce short term interest rates up to 0%. Recent reports reveal that sales of gold by local investors might decrease in the coming years. Here are some major factors on which gold rate in India are affected. You should keep in mind that these factors are the main boosters concerning price of Indian gold.
Following are the factors on which price of gold is dependent in India:
1) Demand of gold jewelry: The demand of gold jewelry has increased and it is being expected that till 2015 this demand will have a worth of $48 billion. This is 75% more than the demand level of current year. Due to increasing demand of online jewelry gold rate in India has met a hike. The increasing level of income in India is also responsible for increasing demand of gold jewelry.
2) Historical significance of gold: India is the largest buyer of gold. Gold has been bought and sold in India since thousands of years. India’s ties with this yellow colored metal are seen as long before 1000 years. In India gold is not being treated just as a yellow metal. It keeps on coming in and out of the season. In India gold is viewed as a part of culture. It is considered as the bed rock of the society. For this reason gold rate in India is seen to rise and touch the limits of the sky
3) Gold gifts for weddings: In Indian culture newly married couples are given gold as a gift in the form of antiques and jewelry. Gold gifts given to the bride are termed as “Stridhan”. She has full ownership over gifts of gold given to her during marriage ceremony. This gold serves as a protector during times of financial crisis. It is for this reason gold rate in India never falls down.