Considered as pure and auspicious, gold in Indian culture has a special place. Gold is generally bought on auspicious days like Akshaya Tritiya or on big festivals like Diwali and Holi. Also, Indians do buy a lot of gold jewellery during marriage season as gift for the newly wed couple. Further, Indian women are known to be very much fond of gold jewellery which only adds to the long list of reasons for buying gold.
In India, wearing gold jewellery - especially in the rural part of the country is considered to be a sign of prosperity and one's social status. Based on the surveys and past available data it is been observed that a good monsoon season followed by a bumper crop impacts the gold jewellery business in a positive way increasing jewellery sales across the country by leaps and bounds.
While, the Indian middle class not just considers gold as auspicious but also trusts it as a safe invest for future. Bought as an investment from their savings, this gold jewellery is generally sold by them in future to fund their child's education, marriage, second home or for their own retirement plans. Middle class people in India generally buy gold in small quantities and mainly in the form of jewellery.
Buying gold jewellery as an investment is simply not advisable. But then, if you like wearing gold jewellery and plan to pass it on to your next generation or sell it only after using it for a longer period (5 to 10 years or more) of time - then definitely you are in for some descent returns. Of late people in India have increasing started buying gold coins on auspicious days instead of jewellery as they have now started understanding the benefits of doing so.