Gold in Indian Tradition
With the turn of the calendar page to December, the holiday season is underway. Here and throughout the Western world it means a jump in consumer spending for Christmas presents.
But the approach of the New Year means something else in other parts of the world. It often means a big, cyclical jump in precious metals prices.
The gift giving cycles in Asia are behind this pattern. Gold is a traditional and prized wedding gift in India and elsewhere in Asia, so manufacturers, jewelers, and the people themselves often start buying at the beginning of the year for spring weddings.
The Indian government, like many governments, has often been at war with the people’s traditional desire to own gold. It prefers people to hold only government printing press money that can be devalued at will, to the benefit of the state and at the expense of the people.
But the people will not be denied and the precious metals tradition wins out each time. The calamity of India’s paper money call-in and exchange two years ago further discredited the state and its monetary authorities. The attempt to demonetize the common currency was so disastrous that it will linger in the memories of the Indian people for a long time…and add fuel to their appetite for gold.
Year after year we see a surge in gold prices at the beginning of the year. For that reason, we recommend that you take action now on your planned precious metals acquisitions.