Consumers Advance Diwali and Wedding Gold Jewelry Purchases as Gold Prices Slump
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13.08.08, 10:53
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World
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Indian retail consumers are taking advantage of the falling gold prices and have started their Diwali and marriage shopping for gold jewelry months in advance.
On Tuesday, gold prices in India dipped as low as Rs 11,000 per 10 gram, a one-fifth decrease from this year's high of Rs 13,650.
Business Line quotes the Managing Director of branded jewelry retailer Gitanjali Gems, Mehul Choksi, as saying: “The plunge in the gold price has come perfectly in time to ignite demand ahead of Diwali and the wedding season. “
He added that demand for gold jewelry has gone up significantly and the company is expecting a pick up in sales.
Gold demand usually peaks in India during the second half of the year, when a number of festivals such as Diwali, Durga Puja, Dhanteras and Raksha Bandhan take place, in addition to the wedding season.
Analysts believe that speculations about a rebound in the prices as the Diwali and Dhanteras festivals grow closer also factor into the spurt in advance buying.
PTI has noted that gold dropped to its weakest in eight months of volatile trade, as investors shifted some of their money back into the US dollar.
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By: Rachel Lieberman, Israel Diamond Industry Portal
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