will india stop buying gold? - gold pendant and earring set
We have seen a variety of reports on how gold and silver prices affect Indian demand.
A month later, we were told that demand was up and that it should be down next month.
I am not saying that the official report is inaccurate, but it is undeniable that it is confusing and does not help us understand the real trends in this country.
Why should we care about the gold market in India?
Okay, let's face it;
The United States is one of the biggest consumers of this metal, and it is a major driver that can give us tips on demand and investment trends, and what may eventually happen in North America.
But read third.
The report on the party in India is very different from getting first-hand information from reliable sources in the country.
I want to know what's going on in India by talking to a famous gold dealer, he can give me insider news, an upward messageto-the-
An instant dispatch from the front line.
So I did it.
Ashesh and recommend the Savio jewelry of Sha (
Savio means "shine" in Italian)
A design studio and jewelry factory in Jaipur, India.
Since starting a business six years ago, they have won many design and manufacturing Awards, winning five in the past six months.
They receive gold from gold agents in Jaipur, which in turn receive gold from dealers in Hong Kong, Dubai, Mumbai and Delhi.
They have industry contacts, friends and relatives all over the world, from the United States, the United Kingdom to Asia and Australia.
If anyone knows what's going on in the physical gold and silver market and in the Indian jewelry market, that's them.
In this exclusive interview, you can read Ashish and Rashmi tell me about unstoppable demand, growing interest in silver, budding demand for coins and bars, falling sales, why do they believe the bubble is coming to us . . . . . . Jeff Clark: ahesh, let us know about your manufacturing factory and design studio.
Ashish: Savio jewelry makes concept jewelry that can be worn in five or six different ways.
It looks "heavy" but very light.
The price is also very affordable.
We design what you want and how much you want to spend.
For example, one of my customers wanted to prepare a necklace and earrings for her daughter's wedding;
According to their budget, we were able to make a set with 35 grams of gold [about 1. 2 ounces].
Jeff: Is there any difficulty in purchasing metal?
Ashish: whether demand is high or low, we will not face any difficulties in arranging gold because traders are hedging gold every day.
We also keep our gold reserves so that our manufacturing will not slow down if the metal is not available immediately.
Our gold suppliers have not encountered any problems in purchasing gold.
Jeff: how do you describe the current demand for gold in India?
Ashish: We see several changes in the trend of gold demand.
First, demand remains strong even as prices rise.
People did not stop buying.
It is part of culture;
Wearing gold jewelry at weddings in India is a long-standing custom and will not change regardless of the price.
In fact, despite the price increase, the purchase volume of our stores is still increasing.
We used to have one or two gold customers a day, but now we have five or six.
We have a lot of new customers, and now we see more frequent new customers.
Second, what I want to say is that the awareness of customers has increased.
Now they also see jewelry as an investment and want to get the right return on investment.
Also, they may book in advance due to price fluctuations-i. e.
If customers order jewelry products, they lock in the price of gold in advance.
The biggest change we face, however, may be that customers are more focused on getting lightweight jewelry, or 14-
Carat gold instead of 18-carat gold.
This is because the price of gold is too high.
However, this adjustment does not affect the desire to have gold.
The bottom line is that the rise in gold prices has not hindered demand.
Jeff: Do Indians invest more in gold? bars and coins)than usual?
Ashish: due to the rising trend of gold and silver prices, Indians are sure to invest more in gold.
Investing in gold and silver has always been a good idea to protect Indian wealth, and now we see more coins and bars they buy than before.
Coins and bars are purchased mainly during the wedding season or Diwali.
Even I buy gold coins every Diwali.
10g, 20g or any quantity.
Another factor is that India has experienced many monsoon seasons over the past two years and farmers tend to invest their savings in gold and silver.
This is a major factor in the increased demand for coins and bars.
Jeff: Is there a lot of resale right now?
Is it higher or lower than before?
Ashish: selling gold has become rare
This is a country that consumes more gold than any other country, and gold jewelry is a central part of culture.
Few of our customers sell back their gold or silver.
In the past, our customers sold their scrap gold and made new jewelry from it, but now we have not met many such customers.
I estimate that we currently have 90% buyers and 10% sellers, with 80% buyers and 20% sellers before this ratio.
They don't sell because they hope prices will rise further in the next few years and they can get a better return than they currently do.
Just a few years ago, when prices went up, some customers would buy gold that was expected to be sold;
Now, these customers are confident that gold will rise year after year and will be sold very little.
Jeff: we have learned that India's interest in silver has increased.
Tell us what you saw.
Ashish: in recent years, there has been a sharp increase in silver demand as more and more investors use silver as a store of value.
Customers are also buying silver to hedge against market losses.
The global market has been uncertain for the past four years, but Silver has brought a huge return and is an ideal investment.
Because Silver offers the most recent return on all goods, it attracts ordinary laymen.
For customers whose gold price is out of reach, silver demand has also increased.
Now, if they can't afford gold, they will turn to silver.
As a result, the number of customers requesting Silver has increased.
Silver is also part of the gift. Donations from India
Usually silver items will be used as wedding gifts, and there are some ceremonies. parents will give their daughter a silver dinner at the wedding.
In addition to the dinner set, silver, such as necklaces, earrings, bracelets or rings, is often found in jewelry;
Gifts such as glass suits and finely crafted boxes;
Finally, demand for silver from electronic products has risen sharply.
Describe how Indian women view gold.
Have you noticed any changes in their view of silver?
Rushmi: gold and silver are deeply rooted in Indian women's cultural and religious traditions.
Diwali and Akshaya Tritiya have become major gold in the last decadeand silver-
Shopping in India
At weddings, gold and silver also play an important role. at weddings, brides often wear gold jewelry from head to toe.
It reminds me of my wedding. [
Rashmi wears about 500 grams of pure gold (about 17. 6 ounces)
Including necklace, earrings, tika and matha patti on the head, haath phool on the hand, bracelet on the wrist, nose ring, arm strap (bajubandh)
And the ring. ]
As a result, demand for gold and silver increased during the wedding.
Our female customers prefer light jewelry to heavy jewelry.
More and more people seem to prefer craftsmanship rather than weight when choosing gold jewelry.
The custom of Indian women wearing jewelry has not changed, although in order to make wallets more convenient, they have begun to accept 14 karat of gold.
People in India wear jewelry at various parties.
There are also more and more female customers in our stores.
They still buy gold and silver jewelry, but now they prefer the quality of the design and the jewelry that looks good.
This is the biggest change for women I have noticed in the last few years;
They want unique jewelry.
They prefer long earrings.
Baskets or hoops.
They also prefer multi-purpose or concept jewelry.
In other words, jewelry that can be worn in different ways.
This attracts female customers because they think they have more jewelry at the same price.
There are different cultures in South India, where people prefer gold jewelry to silver.
Parents are still focused on giving their daughter a wedding present.
Every place in India has different customs, but one thing is still common is that everyone buys gold jewelry for weddings.
Jeff: Ashesh, you said that you are very optimistic about the price of gold and silver, and the price bubble has arrived; why?
Ashish: Obviously, we are very bullish on the price of silver and gold.
We believe that both companies will eventually develop in an all-round way.
Mature bubbles that will surpass the crazy dreams of most investors.
The world is changing and the way we invest is changing.
Gold and silver were once considered a marginal investment, worn mainly as jewelry or as something stored in the bank.
It is now making a comeback and has become a major investment asset for many individuals and institutions.
In India, people are very futuristic. they are closely related to culture, so they will buy gold and silver in advance.
For example, if they knew they would marry their daughter in three to four years, they would buy gold now instead of waiting for the price to rise.
This will continue to support demand and push prices higher.
Jeff: can you see other trends in India?
Ashesh: from ordinary laymen to high
Highly educated people now want to invest in gold and silver.
In fact, those who invest in stocks have been turning to gold and silver.
Even gold and silver ETFs are common in India.
Part of the reason is the price increase;
It is more risky to leave metal at home so that they can avoid the risk of self-protection.
Storage Using ETF.
In addition to my business, I have invested in gold and silver for my personal use.
Instead of buying stocks now, I invest more in gold and silver and expect a good return.
Finally, I just want to say that based on what we see here every day, we are confident that the prices of gold and silver will continue to rise.
Jeff: Thank you, Ashesh.
Disclosure: I do not have a position in any of the stocks mentioned, nor do I have a plan to start any position in the next 72 hours.