From greenback to gold in India

Varghese, who usually avoids shopping, is buying gold jewelry for his daughter's wedding, viewing it as both a gift and a solid investment. Amidst a global credit crisis and a declining dollar, gold is considered a safer asset. India, the largest gold consumer, accounts for 30% of global demand. Indian households have long held gold, and their wealth has grown with rising gold prices. Retailers are optimistic about future demand, especially from the rural population, whose income is increasing. The advice is to exchange currency for gold as a stable investment.

Why is Varghese interested in buying gold for his daughter?

• To show off his wealth

• Because it's cheaper than other gifts

• As a traditional gift and investment

• As a fashion statement

What global factors have increased the appeal of gold as an investment?

• Increased diamond mining

• Rising oil prices

• Technological advancements

• Global credit crisis and a weak dollar

What percentage of global gold demand is accounted for by Indian consumers?

• 10%

• 20%

• 30%

• 40%

How has the wealth of Indian households affected gold demand?

• It has led to a stable demand

• It has decreased demand

• It has increased demand significantly

• It has had no effect on demand

What is the advice given to international markets regarding currency and gold?

• Hold onto cash reserves

• Invest in technology stocks

• Exchange currency for gold

• Invest in real estate instead