Who is the traditional gold buyer? We need to recognize who they are and to do so we need to understand the tangible and fundamental reasons for buying gold. In India, first and foremost we have found the largest gold buyers in the world, making up over 800 tons per year, and the vast majority of their purchases are made up of the jewelry demand. They have a long tradition of buying gold in that nation, as it has always been a way of preserving wealth in their culture, and most of their purchases come from their rural areas comprising approximately 65% of the demand.
The Indian Monsoon season also plays a critical role in determining the amount of the gold demand for the year. Typically every year around May, the Indian population begins planting their crops just before the Monsoon season which normally occurs during the summer months. Later in September is when the harvesting of the crops begins and if the Monsoon season is a successful one, demand for gold consequently moves higher. This year, according to India's weather office predictions, the country should benefit from a normal rainfall in the June-September monsoon season, which is of course good news for Indian farmers as it raises hopes for a good farming season usually portending a fine year for India's gold demand. https://www.a1mint.com/shop/