CHART: When And Why Indians Buy Gold

India is the world’s largest gold consumer. But due to the country’s massive gold-related current account deficit, the government has been trying to curb gold imports. And with rising gold prices and weakness in the Indian rupee there’s very real concern that Indian consumers are going to wind down their gold purchases.

To get a better sense of how gold prices may be impacted, Morgan Stanley analysts Sheela Rathi and Ridham Desai show just when and why Indians buy gold. In 2012, gold demand for life events is expected to increase 50 per cent pushed by an increase demand in rural India:

chart

Photo: AlphaWise, Morgan Stanley Research

chart

Photo: AlphaWise / Morgan Stanley Research

Don’t Miss: Morgan Stanley – Here’s What The World’s Most Import Gold Consumers Just Told Us >

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.


Tagged In

gold india moneygame-us