Is Ben Bernanke Ruining Indian Weddings?

Not only is Ben Bernanke destroying American savers, it appears now he is now helping to ruin prospects for Indian weddings. Oh Ben... so many unintended consequences of your actions - now you crush a nation of young Indian female's dreams too.

Via Bloomberg

• Record gold prices will “ruin” festive-season demand in India, the world’s biggest consumer, the nation’s largest jewelry producer and exporter said.
• “There’s going to be a big drop in jewelry demand if the current price sustains,” said Rajesh Mehta, chairman of Rajesh Exports Ltd. from Bangalore. “The entire festive season demand will be ruined.”
• India’s bullion imports fell for a fifth month in September to 50 tons from 54 tons a year ago, as high prices cooled demand for jewelry.
• Global prices must drop at least 7 percent to lure households in the country, where women are the biggest users of gold, to buy rings, chains and necklaces, Mehta said. “Unless prices drop back to $960-970 levels, Indian buyers are unlikely to make big purchases,” Mehta said.
• “Sales have certainly declined today...Rising prices have put off buyers and scrap sellers are waiting for prices to rise further,” said Arora, who is also the vice president of the Bombay Bullion Association.
• “The only consolation is the gain in the rupee, which has cushioned the impact somewhat for Indian buyers,” said Mehta.
• “Days of gold at $900 an ounce may not be seen again at all,” Hayagriv said. “Gold has been undervalued and there are no two ways about its potential to move higher.”
• India’s gold imports this year may decline to 300-350 tons from 450 tons last year.
• Sales typically reach their highest point during the Hindu festival of Diwali, which falls on Oct. 17 this year, and the wedding season that follows.

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Sep 29, 2009: NYT - Out from India's Alleys, Gold Loans Gain Respect

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Comments

[sdavid0419:]

Wake up India the sky is not falling. Gold (true money) is finally adjusting to its worth. This is not a bad thing in that those that have gold jewelry will get more for it and those buying it will have more stored value in addition to something to be gaudy with in public. As the article points out the rupee is doing well so more expensive gold isn't so bad in India. Now here in the good old U S of A the dollar is crumbling and the jewelry is rising which interprets into only the rich can afford to be gaudy in public. Don't worry some schemer will guild tin with gold leaf for those that have to be gaudy.

Oct 09 07:59 AM

[Freya:]

I copied this link from my Instablog on Gold News:

www.mineweb.com/minewe...

Gold moved to $1,000 in March of 2008, prior to that move India's Bridal shopping had already curtailed. It really started slowing abruptly once Gold Moved to new highs. The Average Bridal wedding ornaments went into the $32,000 range. Platinum became the Rage for a while but that died even more abruptly.

India's First Festival went South early this year.

If you want to place the Onus on Bernanke, you are doing so because he is easier to blame. Bernanke had nothing to do with Gold's Surge between 2007 and 2008. The USD was tanking but that is the purview of the Treasury not The Fed.

Geithner is sent out to bolster the USD. The Treasury's Mandate is to keep the USD strong.

Oct 09 08:42 AM

[John Galt:]

Two words: Cubic Zirconia

Oct 09 08:43 AM

[Graham and ...:]

Only if India (and China) are stupid enough to peg their currencies to the dollar. They should, instead, peg their currencies to gold.

Oct 09 09:56 AM

[Alan Young:]

Really, Mark? Usually it's the over-controlling mother-in-law or the drunken brother who ruins a wedding. Ben Bernanke—really?

Indians like gold because it's permanent value, and here comes their chance to prove it. As daughters inherit their mothers' wedding jewelry, they will start their married life with more wealth. Or, they will get by with smaller pieces of jewelry. That's hardly my idea of ruination.

Oct 09 10:02 AM

[Tony Petroski:]

Entertaining article Mr. Mark.

As for me, I've always found polished copper to be as alluring as gold although it tends to get green after a time. Also, in the spirit of "lipstick on a pig" as that has become popular phrase, how about "gold on a ..."

Oct 09 10:06 AM

[helsi:]

IF WEARING GOLD MAKES ME LOOK GAUDY, THEN BRING IT ON!

Oct 09 11:02 AM

[notsosmart:]

entertaining

Oct 09 11:08 AM

[JeffDB:]

I had to laugh, but I suppose it's not so funny to those affected.

Unfortunately, that includes all of us.

Gallows humor?

Oct 09 11:59 AM

[TraderMark:]

As I read a few other stories on this situation, I discovered that it is basically a shame to use fake gold in India for weddings. So your solution does not work.


On Oct 09 08:43 AM John Galt wrote:

> Two words: Cubic Zirconia

Oct 09 02:20 PM

[TraderMark:]

Ok so I'll blame O'Neill, Snow, Paulson, and Geithner

This has nothing to do with Greenspan and Bernanke... sorry ;)


On Oct 09 08:42 AM Freya wrote:

> I copied this link from my Instablog on Gold News:
>
> www.mineweb.com/minewe...;sn=Detail
>
>
> Gold moved to $1,000 in March of 2008, prior to that move India's
> Bridal shopping had already curtailed. It really started slowing
> abruptly once Gold Moved to new highs. The Average Bridal wedding
> ornaments went into the $32,000 range. Platinum became the Rage for
> a while but that died even more abruptly.
>
> India's First Festival went South early this year.
>
> If you want to place the Onus on Bernanke, you are doing so because
> he is easier to blame. Bernanke had nothing to do with Gold's Surge
> between 2007 and 2008. The USD was tanking but that is the purview
> of the Treasury not The Fed.
>
> Geithner is sent out to bolster the USD. The Treasury's Mandate is
> to keep the USD strong.

Oct 09 02:22 PM

[Freya:]

Mark: Sorry, if I stepped on your toes a tad. I just get Tired of everyone Placing the Blame on Bernanke, when Bernanke came to the Party after the damage had already been done.

Snow/Geithner are playing the same tune.

The Link should be read because it is extremely Bullish for Silver and The Pall on Weddings, which I thought would bring Gold down has been offset by rigorous Imports of Gold for Investment purposes. Something I hadn't heard mentioned by anyone before. Its meant to be Informative. :)

Personally, I lay the Full Blame on Snow/Geithner.

Oct 09 05:41 PM

[Griller:]

He likely also did not intend to make last year's brides happy, mitigating many cases of buyer's remorse.

Oct 09 07:19 PM

[Freya:]

Mark: Paulson is the real Culprit. You can lay it on his doorstep More than on anyone Else. He Headed Goldman when these derivatives were created. When he saw what was happening, He should have told Ben in no Uncertain Terms How much Leverage was Built into the Financial System.

If He did not, then he should be prosecuted for Dereliction of Duty, If he did and Ben Ignored his advice, then He should have pushed his Case to all of the other Agencies. He Knew the Ramifications.

The whole House of Cards could have been prevented.

They had enough time to Change the Accting Rules. Sub-Prime was estimated at $50 Billion, Had the Fed guaranteed all of it right off the Bat, The rest of it could have remained Hidden until Safeguards were put in Place.

Paulson knew that the $50 Billion was at Least $1 Trilion, probably closer to $1.5 Trillion. He Knew about the Leverage He helped to Create.

IMO

Oct 10 01:11 PM

[jynn:]

It is more like indian mommies pwn fed cheif in fiscal policy.....

Oct 13 05:47 AM