Developing countries

For many men and women throughout the developing world, particularly those less well-off, gold is still one of the most liquid and widely accepted forms of exchange, quite simply the most efficient store of value they possess. 

The majority of the jewellery purchased in the Middle East and Asia is used as a means of saving in addition to its function as an adornment. The use of jewellery as savings is often important in rural areas where access to a reliable and appropriate banking system is difficult or impossible.

Gold also offers protection against a weak currency or high domestic inflation levels, which are prevalent and persistent problems in the developing world.

Around two thirds of all jewellery manufacture takes place in the developing world and the proportion is rising. Countries such as Turkey, India, China and Thailand have all seen their exports to developed countries rise in the last few years, generating export earnings and employment. Gold jewellery sales to tourists are also important for certain countries, notably Turkey and Egypt.

In the Middle East and the Indian sub-continent gold plays an important role in the financial security of women. Historically, jewellery was often the only asset a Muslim or Hindu woman could own in practice, and in more traditional families this is still very much the case, especially in rural areas.

A woman's gold can therefore be her only protection against personal misfortune. Hence, the practice of giving an Indian bride gold; this is considered Streedhan, or "property of the woman".