Source: www.guardian.co.uk
UK, October 10, 2010: Every Indian wedding adds to demand in world’s biggest jewelry market. From the jewel-encrusted tikka adorning the bride’s forehead, to her chandelier-like earrings, ornate nose ring and the bangles on her arms, to the rings on her hennaed fingers and toes, a traditional Indian wedding involves some serious “bling.”
Looking like a princess for the day is big business in India, primarily because of the vast amounts of jewelry bought by party-goers. Indeed, commodity analysts have blamed spikes in the price of gold during September on preparations for the six-month marriage season, which starts in October.
In 2009, India accounted for a quarter of all gold used in jewelry products and it is the world’s biggest jewelry market, ahead of China, the US or the Middle East.
Gold has also been a standard medium of exchange for Indian people over the centuries and almost the only means of saving in rural areas, which still account for 70% of the population.
Indian bullion trader Metier Capital Management says gold has huge religious significance in the subcontinent, which also contributes to demand. Custom demands that gold be bought for special occasions such as weddings, births and birthdays, as well as for religious festivals, particularly for Diwali, which is celebrated by Jains and Sikhs as well as Hindus.