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When a person transitions from puberty to adulthood, a variety of responsibilities emerge. What does he do to prepare for the future? Everyone depends on some mode of employment for their livelihood.
Tomorrow is the future, and everyone in society is working hard to make tomorrow a reality and secure their future. In this day and age, saving and investments have transcended the conventional bank deposits with a slew of diverse options available. People are becoming more financially savvy with greater awareness of aspects that need to be considered while planning for the short-term and long-term future.
Why is gold in high demand?
Gold is precious and scarce, and therefore, its value rarely diminishes. In India, especially, it has traditionally been used as jewellery.
In the year 2020, when the world faced a pandemic situation, many countries experienced economic downturns, and their currencies fell in value. Only then did people believe it was prudent to invest their money in a metal that is steadily climbing the financial ladder. In economics, it is said that when demand falls, so does the price, but this has never been the case with gold; its value has steadily risen. During the pandemic, up to 99% of imports were halted. At the same time, Western countries began to invest in this metal, not in the physical but virtual form, leading to a rise in high demand.
Gold price rise in India
The yellow metal’s volatility is a given, which means that its value does not remain constant. Its cost has risen steadily over the last few years. From the standpoint of the economy, the only source of demand growth is the central banks.
The future of the gold price in India is determined not only by demand but also by several other factors, all of which must be understood. Let’s talk about it.
First and foremost, why does India import gold from other countries? Because there are very few mines in India. Simultaneously, gold mining in India will be more expensive than in other countries.
In countries other than India, the following factors influence its price.
- international marketplace
- The exchange rate between Indian rupees and foreign currency
iii. Import duty and profit to be deducted
By the time this metal reaches India, its price skyrockets.
After arriving in India, the price is determined daily by the INDIAN BULLION JEWELLERS ASSOCIATION(IBJA) in consultation with the country’s ten biggest gold dealers.
Future in gold investment
While it is well known that you can invest in this metal, you should do so after careful consideration and comprehension. One should invest in it while keeping all of the factors in mind.
1. Its worth is determined by measuring the purity of gold, which is measured in carats. These are as follows:
- 24 carats is (99.9% pure gold
- 22 carats is 91.7% pure
- 18 carats is 75% pure gold
- 14 carats is 58.3% pure
- 12 carats is 50% pure
- 10 carats is 41.7% pure
The price of gold is determined by these carats, which in turn denote purity. All of these factors must be considered when purchasing gold.
2.It is wise to buy gold when the international market is falling so that a profit of at least 10% to 20% can be made when the market rises.
3. The decision has to be taken after careful consideration because when the time comes to sell, the tax levied on that metal has to be paid from the money received at that time. As a result, the profit percentage decreases.
4. The government’s treasury is virtual, not physical. In Western countries, gold is purchased digitally, which is also known as the stock exchange. Profit and loss are affected by market volatility.
5. In the Indian context, gold jewellery is also passed down through generations as an inheritance. Being regarded as the most secure investment option, it serves as a cushion against inflation and is often sold during an economic downturn or financial crisis.
Conclusion
Gold can be held in physical form as jewellery and coins or virtually in the form of mutual funds and gold Exchange Traded Funds (ETFs), which are stock market investments. There is an inverse relationship between the inflation rate and gold prices.
Inflation can cause the price of gold to fall. When the dollar value rises, gold prices fall and vice versa. As inflation rises, the price of gold begins to soar. All countries, including India, feel the impact of the international market.
Prime Minister Narendra Modi visited Ireland on September 23, 2015. It was the second time an Indian Prime Minister had visited Ireland. The first being Jawaharlal Nehru’s visit in 1956. Ireland is an island nation located in Northwestern Europe and surrounded by the North Atlantic Ocean.
The Prime Minister of Ireland, Enda Kenny, had hosted PM Modi during his visit. The PM was attended by other dignitaries such as the Minister of Foreign Affairs and Trade, Charles Flanagan, and Ireland’s Ambassador to India, Feilim McLaughlin. The main aim of the visit was to create stronger ties and improve trade and cultural relations. Described below is the impact of the PM’s Ireland visit.
Impact on trade and commerce
India and Ireland have strong bilateral trade and business relations. Before the PM’s visit, trades with Ireland were valued at €650 million in business in 2014. This included exports worth €248m and imports worth €402 million.
The indigenous exports increased from €32 million in 2012 to €55 million in 2014. In 2019, the total bilateral trade was around €1.2 billion. The exports and the imports have also increased to €636 million and €480 million respectively. Currently, the total trade between India and Ireland is valued at €4.2 billion. This resulted from improved bilateral ties between the two nations, owing to Prime Minister Modi’s visit to Ireland.
Indian Companies in Ireland
Many Indian companies carry out trade and commerce in Ireland. They provide services to Irish markets and consumers across various industries. Pharmaceutical giants such as Reliance Genemedix and Amneal Pharmaceuticals operate in Ireland. Major IT companies such as Wipro, Infosys, TCS, and HCL also have a strong presence in the country. The trade relations were bolstered after Indian Prime Minister Narendra Modi visited Ireland.
Other companies like Crompton Greaves, Deepak Fasteners, Jain irrigation systems, and Shapoorji Pallonji provide consumer goods and services. Likewise, many Irish companies conduct their business in the Indian market. These companies include pharmaceutical and nutrition players like ICON and Glanbia, IT firms like Globoforce and other companies like Keventer, CRH Taxback Group, and Connolly Red Mills.
Impact on Education
Ireland has been a coveted destination for higher education for Indian students. Over 5000 Indian students have enrolled for higher studies in various institutions in Ireland. The students are admitted to engineering, technology, medicine and management colleges. More than 30 research agreements have been signed between the two nations that allow institutes in both countries to collaborate.
Many reputed institutes like Trinity College, Dublin, and Thapar University, Patiala, have signed MOUs for engineering and science disciplines programmes. Thus, Ireland is an essential collaborator in graduate and doctoral research. This collaboration is also considered an impact of the PM’s Ireland visit.
Indian Community in Ireland
Ireland is diplomatically significant for India also due to the large number of Indian citizens residing there. The Indian origin population is approximately 45,000 people, of whom 18,500 are Non-Resident Indians (NRI), and others are Persons of Indian Origin (PIO). The majority of the residents are working professionals employed in engineering, healthcare and management positions.
It has helped in establishing many policies for the Indian origin population. Two such policies in practice are wearing hijab as a part of the police uniform and the non-requirement of obtaining an additional work permit for the spouse or the partner of Critical Skill Employment Permit holders.
Cultural Impact
As a result of a large population of Indian origin citizens in Ireland and the relationship between the two nations, Ireland promotes Indian culture in various forms. One such example is the celebration of Diwali in Ireland since 2008. The event is organised every year in collaboration with Irish and Indian committees.
Further, an annual contemporary film festival is also a part of the celebration of Indian culture. The promotion of such events indicates the importance of cultural exchange between the two nations. The Irish communities also take a keen interest in conventional practices such as cultivating and consuming Indian herbs and spices. This connects the agricultural practices between the two nations. The cultural ties between the countries were strong, and Prime Minister Modi’s visit to Ireland helped strengthen them further.
Another significant practice is the celebration of International Yoga Day in Ireland. The Irish communities have accepted Yoga as a form of a healthy lifestyle. The practice is similar to the Indian tradition.
Tourism
India attracts around 44,000 Irish tourists every year. Indian tourists too visit Ireland in similar numbers. This was facilitated by the introduction of the common British-Irish visa scheme. This scheme allows the tourists to visit the U.K. and Ireland under one visa, rather than applying for two separate visas. It is valid for short stays. India also extended its Electronic Tourist Visa facility to Ireland to digitally facilitate visa approval and generation. The impact of the PM’s Ireland visit was such that it has also helped establish the tourism sector in both countries.
Conclusion
The diplomatic ties between Ireland and India have been impacted positively after Prime Minister Modi visited Ireland in 2015. It was an essential step toward strengthening the bilateral relationship between these two nations. India and Ireland have been important to each other since the 1900s.
In 2010 and 2017, two honorary consulates were established in Chennai and Kolkata. Later in 2019, a formal and fully functional consulate general in Mumbai. Ireland and India have also shown their allegiance to fighting terrorism after the Pulwama attack. India has also hosted several Irish dignitaries on various occasions. These visits were directed toward engagement in business, education, health and tourism.
Further, many agreements were signed to provide opportunities for employment to people of both countries. Prime Minister Modi’s visit to Ireland helped revive relatively stagnant relations between these two nations. Several cultural and historically similar instances bind these two nations. From Yeats and Tagore to cricket and Diwali, the cultural semblance between these two nations has helped create a strong tie between them.
