Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

PERSPECTIVE
INDIA
The gold jewellery market in India is different from that in Western countries.
Gold jewellery is sold at fluctuating and low prices related to the prevailing value of its fine gold content. The declared
mark-up ranges from 5 - 25%.
It acts as a tradable investment in that it is easy for consumers to sell or exchange their jewellery at a reasonable price,
as many do.
While cultural, adornment and other factors influence the purchase of gold jewellery, its parallel role as an investment
for store of value, savings and money purposes is also relevant.
WESTERN COUNTRIES
Gold jewellery is sold at fixed and high prices ranging from 100% to 300% and more above the value of its fine gold
content.
It is bought primarily for adornment purposes. While the intrinsic value of gold jewellery is important, the investment
dimension is not blatant.
It is difficult for consumers to exchange or sell their jewellery. Only a fraction of the original purchase price can
normally be redeemed.
To mark the difference from gold jewellery sold in Western countries, the broad term “investment jewellery” is
widely used by Western analysts to describe gold jewellery sold in India.
Photograph: Alukkas
A common retailer estimate is that more than 70% of jewellery purchases is marriage-related.
The category would include jewellery bought for weddings and other marriage-related purposes, not least
to accumulate gold for young daughters.
AN INTRODUCTION TO THE INDIAN GOLD MARKET 93