A Comment to Gold Rush of 2009

The large purchase of gold by India from the IMF can be quite a shock to people who are not familiar with the ties India has with gold. Through generations of conquests, wars, and political and social change, gold has been a constant. Gold has been used as currency in India dating back thousands of years and has been used as a constant measure of wealth over that time span. This relationship goes even deeper. The god of creation, Brahma, is said to be the one born of gold (Hiranyagarbha). Gold is used in all sorts of cultural and traditional ceremonies from weddings to births, birthdays, and even for offerings to Indian deities. It is so ingrained in Indian society that gold is sometimes willed to unborn children and to those who will be married in the future. This purchase should not surprise most Indians, as one person puts it, “Gold to us Indians is that ultimate love object… not only does it adorn our bodies, it also acts as a good investment… Gold is ancestral”. This affinity for gold will last as long as Indian culture and tradition persists. So when you see all those “Cash 4 Gold” commercials on your TV’s, at least you can be comforted in the fact that a whole subcontinent is investing in gold as well.