Gold Prices Soar Due to Ceaseless Interest In the Metal reports Occupy Silver and Gold

India transforming into a large buyer of precious metals

San Francisco, CA (prHWY.com) December 3, 2012 - San Francisco, CA- Malayalis' are fascinated with gold, and that interest in causing gold prices to hit new highs. Last year alone, prices shot up to unprecedented heights.

The price saw a jump from Rs 12,500 per sovereign in 2010, to Rs 25,000 this year. Those who think individuals would be deterred in their buying preference due to the surge could not be more wrong.

"Nowadays no one promises a fixed number of sovereigns as dowry; it's the budget that counts, because gold prices are unpredictable," says K L N Rao, store manager at a jewelry showroom in the city. However, these rules mostly apply to the middle and lower classes," he says.

Prices have not stopped people from buying, and some may be wondering why. Roa believe he has the answer.

"The very reason why the gold prices shot up is the scarcity following the huge demand. People are buying gold more than ever now," says Rao. The reason? "It has been universally acknowledged as the best investment. It used to be land but not anymore. Land can't be pledged instantly for money. Also, banks and other firms have come up with massive money in exchange of gold schemes," he says.

While the phenomenon has changed the status of Kerala into the gold capital of India according to Rao. "North Indians too now buy gold as investment although dowry is still silver for them. Jewelries are thriving in places like Chennai today. Just take a look at the number of jewelry ads on TV and you can see it for yourself," he says.

For those who are interested in putting investment funds toward gold, Vijeesh agrees that there is no better time.

"For the same reason, people are insisting on the purity of gold." However, people have the fear of prices crashing too, he points out. "All it takes is a new mine to be discovered somewhere for the prices to plummet. Also, if a group of big investors, who have been hoarding up decide to sell suddenly, it will affect the prices." Under the circumstances, what have come to the rescue of brides are marriage schemes. "Under such schemes, people can pay for the required quantity of gold as soon as the wedding is fixed, at the rates of that day. After six months or one year, they can actually buy the jewelry, however high the gold rates. If the rates have gone down, they need to pay only the lower rates."

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