"Cultural Economics of Gold in India: Tradition, Trust, and Financial Choices"

Gold occupies a distinctive place in the Indian economy, where its value extends far beyond its role as a financial asset. This study explores the cultural economics of gold in India by examining how tradition, trust, and behavioral patterns shape financial choices across households. Unlike in many other economies where gold is primarily viewed as a hedge against inflation or a portfolio diversifier, in India it carries deep cultural and symbolic meanings that influence its demand and accumulation. The paper argues that gold functions simultaneously as a cultural good and an economic resource, making it essential to understand its consumption through an interdisciplinary lens that combines cultural studies, behavioral economics, and financial analysis. At the cultural level, gold is closely tied to religious beliefs and ritual practices. It is widely associated with prosperity, purity, and divine blessing, and is often linked to Goddess Lakshmi, the embodiment of wealth and fortune. This association encourages households to purchase and hold gold during auspicious occasions and religious festivals. Events such as Diwali and Akshaya Tritiya are marked by significant spikes in gold purchases, driven less by market logic and more by belief systems that equate gold ownership with long-term prosperity. These practices demonstrate how cultural norms can directly influence economic behavior, sustaining demand even when prices are high.