We all know women are one of the biggest consumers of gold. But the reason why urban women buy gold is different from the reason why rural women buy gold.
Urban women buy gold as it provides a sense of security, is considered a store of value and plays a role in the display of wealth, while for rural women, gold is an aspirational purchase and is used as a means of commanding respect, according to a report from the World Gold Council (WGC), titled Retail Gold Insights: India Jewellery.
The report is based on a survey of 2,000 rural and urban women, and it states that 60% of Indian women own gold jewellery. According to the report, gold is the second-most popular item among fashion and lifestyle shoppers preceded only by designer clothes or silk sarees.
The idea behind conducting the survey was to understand the reason why Indian women buy gold jewellery. The insights are expected to help the industry identify barriers and expand the market.
Recently there has been a dip in the demand for gold jewellery due to soaring prices and the lockdown.
According to WGC’s gold demand trends report for the January-March 2020, the demand for jewellery fell to the lowest on record during this period. China, the largest jewellery consumer and the first market to succumb to the outbreak, saw demand for gold jewellery drop by 65%. India, the second-biggest consumer of gold, saw the jewellery demand fall by 41%.
However, there is hope that the demand will pick up when things normalize. According to the report, 37% of Indian women are planning to buy gold in the near future.