The Indian gold market is one of the largest and fastest growing in the world today. Until the year 1990 Indian citizens were restricting from owning gold bullion because of the Gold Control Act. Gold is part of the culture of the country in many ways that are not so well understood by Western societies.
Gold jewelry is highly prized in India, and because of the counties ever growing economic prosperity, the gold jewelry market is increasing extremely rapidly. Gold jewelry is also thought of by some of the less off inhabits, as a type of savings program.
In other words, not only can they wear it and be proud of it. If some day they need money, they can also sell it fairly easily and rapidly. The Indian general public controls vast amounts of gold. Some educated guesses have estimated this figure to be somewhere in the range of 20,000 to 25,000 tons of gold.
It is also possible to invest in Indian ETF’s that are fully controlled and managed by local financial institutions. With the price of gold increasing the past few years or so, this type of investment has become very popular within the country.
If you live in India and you are considering acquiring gold for investment purposes, you will have to make the very same type of decisions every other investor in the world do. Gold ETF’s can be used for both short term and long term investing in the commodity.
However, gold coins or bars should be only bought for long term investments. Gold jewelry on the other hand might be very easy to sell, but it is not the way you want to go if profiting on the commodity is your primary goal.