Skip to main content

Yellow, Yellow, Crazy Fellow

Yellow is a dear colour of Indians. More so for women. It denotes many things in different parts of the country: devotion, sacrifice, purity, meditation, abstinence, beauty, etc.

But it is the colour of the dearest of all, GOLD. It is well known that Indians are the biggest consumers/buyers of gold in the world. Almost half of the world's gold sold every year is in India. All of 800 tonnes plus. In consumer spend terms it is INR 1 trillion or US$ 25 billions. Hey, that's hell of money and most of it is private. What is still hidden is the fact that there is another 100 tonnes that is recycled and consumer still spends another Rs 25 billion or US$ 625 millions. Hang on, on top of it the next layer of precious and semi precious stones that accompany the gold in making jewellery. It all adds up to more than US$ 30 Billions.

India is home to world's 70%+ gold in raw/jewellery form and most of it is with individuals/families. That is one hell of assets.

It all starts in a small manner - gram by gram; ring by ring; chain by chain, necklace by necklace etc. On an average a middle class would use anywhere between 50 - 1000 grams of gold on a marriage. This would typically mean 4-5 years earnings and all accumulated over a long period of time.

It is festival season and all are looking to buy many things - never to forget Gold, Oh dear GOLD.

Happy buying.

Comments

Popular posts from this blog

Unsaid speaks louder than words

The message was clear. US is facing a financial crisis. Americans need to contribute to get out of "conveniences". But the statements like "it will get worse before it gets better" without a timeline and references to a time of slavery etc are not comforting. American era may be ending faster than anticipated. Obama's inaugration speech was truly indicative of a man under pressure from the start. As any sportsman will confirm, it's all in the mind and followers just follow the leader and Obama has not set the bar high at all. My view is that it is heading south fast...... Contrast this with the situation in India. All that leaders are talking about is security and resolve to protect Indian at ANY COST. Economic issues are tackled with a view, yes it is a slowdown but we will still beONE OF THE BEST IN THE WORLD. No talk of worsening things, less spending by government. News headlines are all talking about shrinking bottomlines for profit and NOT LOSS issues....

New addiction

The Golden Quadrilateral and more roads

Over the last couple of weeks I had a chance to travel by road in five north Indian states. What a pleasure? The road network is becoming really fantastic. I started on National Highway 8 and then on to NH 1, 21, 22, 70,72 and 88 apart from many state highways. It is not the roads only that impressed me but also the new flourishing enterprises it has generated alongwith is the key to the trip. Many a voillages and towns that were cut off from nearby larger places are now well connected. Movement of people and goods is leading to a greater economic involvement and is helping in the inclusive growth mantra. I was also witness to an amazing incident - towns of Rahon and Samrala are barely tens of kilometers apart but could take upto 5 hours by road a few years ago and now less than half an hour. I could see a stretch limousine (a genuine one and on top of it a Lexus) in a small village wedding in the prosperous "Doaba" region of Punjab. On being generously invited (despite being...