Indian consumers are still dazzled by gold despite the economic crisis, according to a report by Business Line.
According to the All India Gems & Jewelry Trade Federation (GJF), gold sales between October 1 and 20 soared by 66% to 50 tons, as compared to the same period last year. With the approach of Dhanteras, gold sales are expected to hit a new record.
The Director of the World Gold Council, Darmesh Sodah, noted that jewelry sales of 50 tons in 20 days took on increased significance as sales during the entire fourth quarter of 2007 reached 81 tons.
Traditionally, annual gold demand in India reaches about 850 tons. Demand decreased to 727 tons in 2007 due to a sharp rise in gold prices.
Chairman of the All India Gems & Jewelry Trade Federation, Ashok Minawala, said: “When it comes to investment, gold has a special place across all Indian consumer segments. We expect a buoyant Dhantera this year.”
Business Line quotes a Mumbai-based jeweler as commenting that while jewelry sales in major metros such as Mumbai, Ahmedabad and Kolkata have taken a beating due to the financial crisis, sales are very good in urban and semi-urban regions.
Since the beginning of October, gold prices in the domestic market dropped by Rs 1880 to Rs 11,530 per 10 gm.
Dinesh Jain, the Chairman of Promotion & Development, All India Gems & Jewelry Trade Federation, said that now is the best time to invest in gold as it has touched $699 per troy ounce, the lowest level in the last 18 months. He predicted an increase in its price very soon.
