India is the worlds largest consumer of gold in the world (around 32%), and is due to the obsession with it regarding weddings and visible signs of wealth.
Now this isnt the rapper show off, although they do, but its a sign that the amount they wear is commiserate with their total wealth and standing in society.
A family starts accumulating gold for their daughter from the day she is born, so that when she is married off, all the gold adorns her and signals to the grooms family that she is capable of taking care of herself if need be and is bringing something to the new family to be respected.
Now I saw all this on a edition of 60 minutes, and my first reaction was that its just a “modern form of the dowry” etc…and then stopped myself and listened more and loved the idea more and more.
Not the arranged marriages but the “love affair” with gold.
Indians on average put about 30% of their wealth into savings, and much of their savings are gold.
The 60 minutes reporter was incredulous, “How can you be both frugal and conservative, but yet be willing to spend thousands of dollars on gold?”
Well you moron because that is an INVESTMENT! better than your cbs pension program, gold is something you can carry with you and always maintains a form of wealth!
Now you may not be getting your moneys worth on a chain and jewelry versus bullion and coin, but it is still something with true value unlike the new financed Infiniti or 56″ plasma in the common American Home.
India is also the largest consumer of Bullion and Bars along with Jewelry so there is also the more practical side of their “obsession”
Think about it now, what do you think it will mean in the coming decades when our paper money finally crashes and loses ALL of its “inherent” value?
What do you think is going to happen to a country where the majority of its citizens own massive amounts of gold? do you think maybe they might be in a much better position than the U.S. regarding trade and commerce come the day when things reconstruct?
What would 2008 have looked like if Americans had held 10-20% of their investments in Gold, had 6 months of food preps and 90 days of cash savings?
It would have looked like nothing, a minor glitch with people on the news saying “well be ok for awhile, until this all calms down, cant go to Disney world like we had planned, but oh well life will go on!”
I wish we had followed Indias example and if we are going to be consumer culture that pumps you with B.S. advertising to buy stuff, it might as well be something with intrinsic value instead of that new thing you dont need to impress people who dont care.
To learn more about the new coming economy see our BARTER section
For more information on Precious metals investing in Gold and Silver