Yeh India hai mere yaar

Livemint reports that Indians are reacting in a different way when it comes to the purchase of Gold. Gold is climbing strongly on world markets - in London the spot price last week soared as high as $999.10 an ounce, the highest since March 2008 as investors sought a safe haven amid escalating fears about the global economy. 

But in India, the local currency’s weakness against the dollar has driven the Indian gold price to all-time peaks in rupee terms. “We’re seeing old broken bangles, coins... People are clearing out the gold items they don’t want. It’s different from the rest of the world where people are buying -- here people want to sell their gold,” Chokshi said. 

Indians are still buying gold for marriages - they believe it is auspicious to give gold for weddings and other religious events. But consumers are getting less for their money because of the high cost. In general the volume of gold sold was down by 25 to 30%. And with the end of the marriage season in the next 20 days it is expected to come doen even more.