In India, there is attraction for gold and silver since the early
historical period. Our faith in God and gold dates back to the Vedic times. We worship
both. In India, gold is an obsession, deep-rooted in mythology, religious rites and its very
psyche.
These two precious metals are used for making ornaments and also for investment of
surplus funds over a long period. In every family, at least a little quantity of gold and silver
is available.
There is also a general tendency to purchase gold or silver or gold ornaments as and
when surplus money is available. The prices of both the metals are continuously
increasing. Moreover, they are easily saleable (liquidity) at the market price. This brings
safety, profitability and liquidity to the investment in gold and silver. As a result, investment
in gold and silver is popular in India. It is one avenue for investment. India’s gold
consumption in calendar 1995 was 477 tonnes, the highest in the world. The import of gold
is now made free.
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