Kiran Laxman Salunkhe used to buy jewellery during religious festivals, but sliding gold prices have led the young farmer to break with his family's traditional investment.
This year Salunkhe has deposited his hard-earned savings at the bank for the first time in a decade and bought farmland.
"I bought jewellery when gold price was 32,000 rupees (per 10 grams) last year. Now jewellers won't pay me more than 27,000 rupees if I want to sell. Why should I invest in gold," said Salunkhe, who farms 15 acres of sugar cane in Vangal, a village 250 km (160 miles) south of Mumbai.
"Nowadays it is risky to keep jewellery. Burglaries are rising," he said. "With a fixed deposit there is no risk."
A one-quarter drop in local gold prices over the past year has shaken the confidence of Indians in the precious metal as a store of value and dented demand in the world's second-biggest buyer.
Text: Rajendra Jadhav and Indulal PM, Reuters
Image: Ratan Tata poses in front of a Nano car made of gold during a ceremony in Mumbai on September 19, 2011. About 80 kg of 22 karat gold, approximately 15 kg of silver and gemstones were used to decorate the car.
Image courtesy: Reuters