Pent-up gold demand in India to be unleashed when the rupee turns?
A recent downtrend in the currency and the prospects for a good harvest point to the possibility of a resurgence in physical demand from the world's largest consumer
Author: Rhona O'Connell
Posted: Tuesday , 07 Sep 2010
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India is one of the most important fulcrums for the physical gold market world-wide. The metal has religious significance to the Hindu population in particular, and over 60% of the Indian population is in the rural community. As a result, although the country continues rapidly to industrialise, meaning that gold has competition for disposable income and the leisure dollar, the metal's prime position as a hedge against risk - or a just a simple, solid investment -.remains solid, with farmers still buying gold both as an investment and as a form of wealth
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