The Indian populace is crazy about gold.

We buy around 2.5 tonnes of gold on average on a daily basis out of the roughly 14 tonnes that gets sold on a daily basis.

China buys around 3. Between the two of us that's 40%. And China has like 5 times India's nominal GDP, which is what is relevant for imports. The PPP number is like 2x.

Add US and EU to mix who buy around 1.3 daily and you get to 60%. And of course their nominal GDP is like 30x and 17x of India’s. PPP is 30x and 5x.

And most of the gold in India is not for traditional market investments but for jewellery (especially weddings), family inheritance, hedge against crises, etc.

Out of 2.5 in India, 2 is personal and 0.5 is institutional. China split is 2-1. And China's personal is much more balanced on terms of investments and household use (roughly 50-50) compared to India (20-80). So we are consuming 1.6 tonnes as daily average for personal use.

US 1.3 is split as 1-0.3 between institutional and household. And household is split 2/3-1/3 for investments and household use. EU varies country wise, but most are in line with USA.

Have attached a file with the analysis of data from world gold council.

India thinks about gold differently. We need to change our thinking to improve things for the country economically.

Goldfinger: India’s gold obsession is unhealthy